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Life Insurance
Accidental Death Insurance
There are many types of insurance policies available in the market and accidental death insurance is one of them. It is a bit different from the usual insurance policies, in the sense it does not pay out in the event of death caused by injuries. It pays out when death is caused by an accident or if there is serious injuries or loss of body parts due to an accident.
The amount received from this policy depends on how much coverage a person has taken which means coverage can even be opted for a modest amount and can even go for up to a million dollars. In the event of a serious accident the policy pays out to the policy owner or the insured and in the event of death it pays out to the policy beneficiaries. This insurance type will not apply in the event of death caused by intoxication or drinking or under the influence of controlled substances.
People who opt for this policy type are those who are in a high risk jobs such as heavy construction work or laying pipelines in dangerous terrains and so on, wherein there is considered personal safety at risk. People frequently traveling by are also seen to take up this policy type. The amount of premium is low and so it is very affordable. Insurance companies charges a low as less than $10 for premiums, while the amount received can be as high as $100000 or $200000. The amount of compensation received here is unlike any other insurance policy, wherein for such other policies the policyholder pays considerably higher insurance premiums.
Those taking up should also look into areas when the policy will not apply. Accidental death and disbursement policy will not apply in the event of suicides, death under surgery, loss of a body part caused by a mental or physical illness, or heart attack while driving. Furthermore a claim has to be made within three months of the accident happening. If this is not done the policy lapses and no one benefits. It is also possible to bring family members into it. This has to be checked with the insurer. Insurers offers spouse's coverage which is about 45% to 50% and for children which is about 10% to 20%. This is also something to be checked with the insurer.
Accidental death and disbursement policy will be very beneficial for families in which the sole brad winner is in a high risk job. However, this policy type has a set of rules under which it will apply, so those considering it must make sure to look into these rules before taking it up.
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