Individual Accident Insurance

Accidental Insurance Plans — Accidental Plans, Coverage & Quotes

Accident insurance is a type of life insurance. Just like standard life insurance, it provides a specified lump sum to beneficiaries after your death. However, accident insurance policies pay out higher amounts relative to their cost. This is because the accident insurance company only pays in the event that the death is caused by an accident (e.g. a car or plane crash). Accident insurance plans are, in effect, betting that you will either outlive the policy or pass away due to medical events not covered; this way, they profit from years of premiums without having to fulfill claims. Accidental insurance can be bought as a rider attached to a life insurance or health insurance policy; it is also sold on its own.

The two major types of accident insurance are Accidental Death and Dismemberment Insurance (otherwise known as AD&D) and Accidental Death Insurance. AD&D insurance pays out the entire value of the policy upon a qualifying death, or a portion of that amount in the event of a severe injury. Such an injury usually entails dismemberment. Losing the sight from one eye or a singular limb, hand, or foot provides a partial payout, whereas if you lose two or more, the full amount is paid out. In those instances, you will require extensive health care for the remainder of your life, and may be unable to return to the same type of work you did prior to the accident. Accidental death and dismemberment insurance will help provide for your care.

Accidental death insurance, on the other hand, is a scaled-down version of AD&D. It only covers those cases in which the accident is fatal. The payouts tend to be several times larger than what a standard life insurance policy provides. This is because accidental death insurance policies take into account the extenuating circumstances that may cause an individual’s unexpected death to wreak greater financial havoc. For example, your family may be unprepared to pay for your funeral expenses in the case of a sudden death; accidental death plans can take care of that. This type of accident insurance will also handle any medical expenses incurred while attempting to save your life–emergency treatment can be very expensive, especially if a lengthy hospital stay was involved.

When buying accident insurance, it is imperative that you are clear on exactly what it covers. Most companies will not pay out an accidental insurance claim involving physical or mental illness or a drug overdose. Neither is a fatal accident resulting from surgical error covered. Some plans are more comprehensive than others. More lenient requirements may lead to higher accident insurance premiums, though. Accidental death and dismemberment policies are also more expensive than accidental death plans, due to their expanded coverage. Still, you are able to find accidental insurance quotes cheaper than the same coverage would be with standard life insurance, because statistics show that most people die from medical illnesses. The trade-off is that you run the risk of the policy not paying out at all, if you die under non-qualifying circumstances.

VitalOne has licensed insurance agents who are able and willing to help you compare accident insurance plans. They can help you determine whether an accidental death or AD&D policy is the best choice for you and your loved ones.

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