Unfortunately, accidents can happen to anyone at any time. Accidents are a leading cause of death among adults in the United States. In 2018, unintentional injuries or accidents accounted for 6% of all U.S. deaths. Over 38,000 Americans die from road crashes every year, and 4.4 million are injured enough to require medical attention. Accidental death is also the least predictable and the most difficult to recover from financially. Rising recovery costs are making it difficult for people to rely only on their core medical insurance. According to a Kaiser Family Foundation analysis, average family premiums have increased 47% since 2011. Accidental death insurance can supplement your core insurance with additional coverage. Read on to learn if accidental insurance is worth it for you.
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What is Accidental Death Insurance?
Accidental death insurance offers coverage for accident-related deaths. It’s designed to help you and your loved ones financially if you die or are seriously injured in an accident by giving you and your beneficiaries a set amount of money. You or your family can file a claim that falls under specific accidents covered by your insurance policy. You can expect to receive cash if you pay your premiums and you can put that cash toward whatever you choose. The insurance company will pay your beneficiaries if the accident results in death.
You can also use accidental death insurance to complement your existing insurance and disability insurance. Keep in mind that accidental health insurance doesn’t fully replace disability insurance because there are fewer benefits. However, you can expect lower premiums on your accidental death insurance than on other types of insurance.
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What Does Accidental Death Insurance Cover?
Accidental death insurance covers deaths and injuries from accidents and not from natural causes or illnesses. Most policies also cover death or injuries from accidents at home, work, and while traveling.
Here’s a list of some things that accidental death insurance covers:
- Specific injury care – concussion, burns, emergency dental work, poisoning, etc
- Emergency care – ambulance, X-rays, exams, hospital treatments, etc
- Supportive care – Physical therapy, prescription medication, follow-up treatment, etc
- Hospital care – Intensive care, hospital admission, or confinement
- Surgical care – Major and minor surgeries
- Accidental death
Here’s a list of some things that accidental death insurance doesn’t cover:
- Natural causes
- Drinking and driving
- Mental or physical illness
- High-risk activities like skydiving and car racing
- Drug overdose
- Suicide or attempted suicide
- Death or injury while serving in the armed forces
- Operating an aircraft
- Fumes, gas, poison ingested voluntarily
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How can I get Accidental Death Insurance?
A lot of companies offer accidental death insurance on a voluntary basis. You can purchase accidental death insurance as a standalone plan, or as an add-on. Most people purchase it through their workplace because you can often pay your premium through pre-tax payroll deductions. Employers will often give you the option to add your spouse or children to the policy. Keep in mind that coverage through employer-based policies may be limited. If your employer doesn’t provide this type of insurance, you can buy stand-alone policies from insurers or through a credit or bank union.
Here’s a list of some of the top accidental death insurance providers:
- AIG Direct – Offers personalized quotes for anyone ages 18 to 80. Policies are available for those in high-risk professions.
- Assurity – Offers accidental death insurance for personal use
- Sun Life – Offers two accidental death insurance plans for employers to choose from along with add-ons for extra protection
- Prudential – Monthly premiums start at $7.18/month/employee
- MetLife – Offers two comprehensive accidental insurance plans with different payouts
- Farmers – Monthly premiums start at $4.5/month for $100,000 coverage
- Mutual – Family coverage available
- Aflac – Offers accidental death insurance for personal use or for employees
- Protective – Offers accidental death insurance riders to life insurance policies
- TruStage – Available for credit union members
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How Much Does Accidental Death Insurance Cost?
Accidental death insurance is cheaper than traditional life insurance because it’s limited to accidents. Premiums are usually tied to the amount of coverage you buy. Monthly premiums can be as low as $4.50 for $100,000 in accidental death coverage. Rates vary from insurance to insurance, so shop around to find the best rate.
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Pros and Cons of Accidental Death Insurance
| Pros | Cons |
| Premiums for accidental death insurance are fairly cheap | Accidental death insurance doesn’t cover deaths caused by illnesses |
| You can add accidental death insurance to another policy or buy it separately | The chance of accidental death insurance payout is relatively low |
| You don’t have to take a medical exam to get accidental death insurance | You may lose coverage if you leave your job |
| You won’t be denied coverage because of your health | Some accidental death insurance policies can include benefit reductions based on age |
| You can get approved for an accidental death insurance policy fairly quickly | – |
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So, Is Accidental Death Insurance Really Worth It?
It’s important to remember that accidental death insurance supplements life and disability insurance. Coverage is limited to certain events, so you or your family won’t get paid if the death or injury occurs outside those limitations. For example, if someone dies from a drug overdose, beneficiaries won’t receive a payment. Definitely consider opting into accidental life insurance if your employer offers it at no charge, or if you can add coverage to your existing life insurance policy. Accidental death insurance can especially benefit people with risky jobs or hobbies like oil rig operators, but it works best in combination with life and health insurance. Life insurance doesn’t pay if you become disabled by an accident, but it offers coverage for more types of deaths. Health insurance covers expenses like hospital and doctors’ bills, but it doesn’t pay for housing, rehabilitation bills, or lost income while you recuperate.
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Frequently Asked Questions
Do I need both accidental death insurance and life insurance?
It depends. Paying an additional cost for accidental life insurance isn’t necessary if your life insurance policy adequately covers you in the case of death or accidental dismemberment. It’s worth considering accidental death insurance if you’re in a high-risk profession.
How is accidental death insurance compensation calculated?
Insurers calculate accidental death insurance differently. Your policy will usually pay out 100% of its value in the case of accidental death. For dismemberment, policies generally pay out on a per-member basis. Ask your insurance provider how your policy is structured for compensation.