Accidental Death Insurance
What Does Accidental Death Insurance Mean?
Accidental death insurance is a policy that stipulates compensation will be paid to a beneficiary if the insured dies due to unintentional or unforeseen causes. This policy is typically recommended for individuals who work or live in hazardous environments, as it helps mitigate the financial losses a beneficiary may face due to the accidental death of the insured.
Accidental death insurance is also referred to as double indemnity insurance.
Insuranceopedia Explains Accidental Death Insurance
Accidental death insurance covers death resulting from accidents such as drowning, traffic accidents, homicide, or heavy equipment malfunction. However, it excludes deaths caused by risky sports or hobbies, surgeries, illnesses, or drug overdoses.
For the beneficiary to file a valid claim, the accident must have directly caused the death of the policyholder, and death must occur within the period specified in the policy and before the policyholder reaches the age limit. This insurance can be purchased as a standalone policy or as a supplemental policy in addition to an existing life insurance policy.
