What Does Accidental Death Insurance Cover?

January 27, 2012

Accidental death insurance is often grouped with dismemberment insurance and pays monies to the family of someone who is killed in an accident. Accidental death and dismemberment insurance only pays for the person who is insured; it is not liability insurance or any other sort of car insurance coverage. In fact, accidental death insurance is very similar to life insurance. If you are looking through your auto insurance options and want more information about accidental death insurance, here's a list of the things which accidental death insurance can cover.

Death on Public Transportation

Accidental death insurance pays the most when someone who is insured dies as a result of an accident on a commercial plane, train, subway or bus. The death must occur within 3 months of the accident, and it must be proven that the death was the direct result of the accident.

Death in a Car Accident

If death occurs due to a car accident, where the insured party was riding in a private vehicle rather than on public transportation, accidental death insurance will still cover that person. However, the amount paid by the same policy will be less than if death occurred as a result of public transportation.

Death by Other Accidents

Most other accidents which result in death are covered under accidental death insurance. However, certain specific accidents will invalidate your claim. If you die as a result of surgery, sickness, a drug overdose or a hernia, accidental death insurance will not cover you. Your insurance may also not apply to death while involved in activities which are considered dangerous, such as bungee jumping or skydiving. Your policy provider can give you more information about precisely what is and what is not covered under accidental death insurance.

How Accidental Death Insurance Differs From Life Insurance

Accidental death insurance differs from life insurance in a few respects. First, accidental death insurance covers far less eventualities. If you die while undergoing surgery, for instance, this insurance will not cover you but life insurance will. It's actually possible to combine life insurance and accidental death insurance. If you die in one of the circumstances described above, your beneficiaries will receive the payout from both the accidental death insurance and the life insurance policies. Since this type of insurance is quite inexpensive, this may be something to consider, especially if you have a high risk job (although in this case, accidental death insurance will cost more).

Accidental death insurance can be an inexpensive addition to life insurance, but the cases it covers are fairly limited. It shouldn't be used as an alternative to life insurance since statistically a greater percentage of people die under circumstances which are not covered by accidental death insurance. However, if you have a high risk job or feel that the low cost of accidental death insurance makes it a worthwhile purchase, you can contact your life insurance provider to ask about adding accidental death insurance to your policies.