Accident Insurance

Accidental Insurance Plans — Accidental Plans, Coverage & Quotes

Accident insurance is a type of life insurance, only with more limited coverage. It provides a specified lump sum to a policyholder’s beneficiaries only if the death is the result of a qualifying an accident. Due to these exclusions, accident insurance policies are cheaper relative to their cash value and pay out higher amounts relative to their cost. Students may find accident insurance cost-effective because they are generally younger, and statistics show them as more likely to die from accidents such as airplane or automobile crashes. Accident insurance plans profit through the assumption 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. Although students must be careful of not buying a policy that is too short, they are also less likely to fall prey to the ineligible diseases that kill most older adults. There are two ways to buy accidental insurance: as a stand-alone policy, or as a rider attached to a student health insurance or life insurance policy.

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, only pays out if an accident is fatal. These payouts are several times larger than a normal life insurance pollicy provides. This is because you take a greater risk of not receiving any money from the policy. Nobody expects a student to pass away; sudden deaths caused by accidents leave your family and friends unprepared to deal with the financial fallout. For example, your family may have unexpected funeral costs or emergency medical expenses that were run up while trying to save your life.

You must be sure of exactly what your accident insurance coverage includes. Most companies will not pay out an accidental insurance claim involving physical or mental illness or a drug overdose, nor will they cover surgical errors. The comprehensiveness of accident insurance plans vary, although more lenient requirements often lead to less affordable accident insurance premiums, though. For the same reason, accidental death and dismemberment policies are more expensive than standard accidental death plans. Since underwriters’ statistics show that most people die of medical illness, you are able to find cheaper accidental insurance quotes. This can be more appealing to younger students in college, because in that age group there is typically a higher risk of dying from an accident as opposed to illness.

Are you looking for an accidental death or AD&D policy? VitalOne’s licensed insurance agents are here to provide you with accident insurance quotes, as well as help compare accident insurance plans.

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