Minggu, 01 September 2013

Accidental Life Insurance

Accidental Death

Accidental death is a limited life insurance designed to cover the insured in case of death due to an accident. The accidents range from an injury and upward, but usually do not cover deaths resulting from health problems or suicide. Because they only cover accidents, these policies are much less expensive than other life insurance policies.

 It is also common features such as accidental death and dismemberment insurance (AD & D). In an AD & D policy, benefits are available not only for accidental death, but also for loss of limbs or bodily functions such as sight and hearing.

 Policy death and AD & D Accidental very rarely pay a benefit either the cause of death is not covered by the policy or the coverage is not maintained after the accident until death occurs. To be aware of what coverage they have, an insured should always review their policy for what it covers and what it excludes. Often does not cover an insured who puts themselves at risk in activities such as skydiving, flying, professional sports or involvement in a war (military or not).

 Accidental death benefits can also be added to a standard life insurance policy as a driver. If you buy this clause, policy, pay double the nominal principal amount if the insured dies due to an accident. This used to be commonly known as double indemnity policy. In some cases, insurers may even offer triple indemnity cover.

 Related Products

 Riders are modifications to the insurance policy added at the same time the policy was issued. These riders change the basic policy to provide some feature desired by the policy owner. A common rider is accidental death (see above). Another common rider is premium waiver, which waives future premiums if the insured becomes disabled.
 Joint life insurance is either a term policy or permanent securing two or more people with income due to the first or the second death.
 Survivorship life is a whole life policy insuring two lives with the proceeds payable on the second death (later).

 Single premium whole life is a policy with a single premium paid at the time of maturity of the policy.

 Changing life is a whole life policy with smaller premiums for a specified period of time, after which the premiums increase for the remainder of the policy.

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