Accidental death and dismemberment insurance will pay your beneficiary if you die from an accident and not natural causes. Normal life insurance will cover a variety of different death causes instead of just accidents.
However, there can be reasons why people don’t qualify for traditional life insurance, including their medical history.
Traditional life insurance requires a medical test that some people are unable to pass. The costs for traditional life insurance can also prevent people from getting life insurance.
Insurance agents don’t just want to send people on their way with no coverage and this is where accidental death and dismemberment insurance comes in.
There is no medical test for this type of insurance, and it can be much cheaper. Many of the causes people die from are accidents, especially at the younger ages through age 40.
Accidental death and disbursement insurance policies can be more affordable and it’s helpful to cover yourself for a few things instead of just not covering yourself at all.
What Does Accidental Death and Dismemberment Insurance Cover?
This insurance will cover death due to accidents, loss of a finger or limb, loss of sight, speech or hearing, paralysis, or coma after an accident.
There could be details in the fine print of your insurance policy for any other exclusions. Traditional life insurance will cover many other causes of death but won’t cover dismemberment.
There are some instances where this insurance won’t pay, even when it may be considered an accident. This includes drinking and driving, skydiving, drug overdose, surgery, car racing, bungee jumping, war, suicide, or attempted suicide.
Accidental death insurance can be an added layer to your life insurance policy if you are able to get one but if you aren’t able to get one due to the qualifications then you can still be covered for accidents that happen in life.