Are Accidents Covered By Life Insurance?

Accidental death and accidental life insurance. Sounds rather horrible doesn’t it! It’s one of those things you hope will never happen, but it quite often does. That’s why it’s always important to protect yourself and your family with life insurance. We all hear the TV ads: “What will your family do if you’re no longer there to support them financially?” Accidental life insurance cover is a pretty good thing to have to cover yourself and your family. But does it differ from other life insurance policies? It’s great though – as Billy Explores has researched all you need to know about accidental insurance and what does accident insurance cover for both personal accident and accidental death. Read on to find out more!

What is Life Insurance?

Before we answer the questions what is accidental insurance coverage and what does accident insurance cover, we need to understand what life insurance actually is.

Another name for life insurance is ‘death cover’ (very morbid we know!). You can purchase a life insurance policy which will pay an agreed lump-sum should you pass away. The idea of life insurance is that is meant to replace any income so if you’re unfortunately no longer here, your family is still able to meet financial obligations.

Naturally the amount of life insurance you require will be dependent on your individual circumstances. Should you own your home outright, you may need less of a payout than your neighbour who still has a mortgage. Likewise if you and your family has loans, debts or credit cards, you may want your life insurance to cover those cost in full. Life insurance can give your family the chance to grieve without worrying about how they’re going to pay the bills. Find out more here and here.

What Is An Accident When Talking About Life Insurance?

You will find that life insurers normally define “accident” that is from an unexpected and unintentional, violent, external, and visible circumstance or event, and this circumstance must be separate from any other cause. Ie the accidental death can’t be related to any pre-existing medical or other issues, for example those relating to your physical or mental health.

Now it’s very important to see how your insurer defines accidental death, as this definition will obviously affect when you are or and are not covered for, should you pass away or be involved in an accident. That’s why it’s always important to compare life insurance.

What Is The Difference Between Accidental Death Life Insurance and Personal Accidental Life Insurance?

Obviously there is a distinction between an accidental death life insurance policy and a personal accidental life insurance. In one situation, your accidental death insurance coverage is for if you actually pass away as a result of an accident, and personal accidental life insurance is to provide a benefit should you be injured as a result of an accident.

What is Considered Accidental Death For Insurance Purposes?

Again, depending on the exact definition in your life insurance policy, accidental death covers you and pays a benefit should you die as a result of a car crash, fall or something you just can’t see coming (for example if you’re struck by lightning or kicked by a horse). It is important to review any potential exclusions that your life insurance provider may not cover however, for example they may not pay out the accidental death is as a result of a adventure sports, any known health issues, an illegal act, act of war or professional sports. It’s always best to see exactly what does your accident insurance cover you for, and compare life insurance before you actually buy any life insurance.

Is Accidental Life Insurance Worth Having?

Before you buy life insurance, in a particular looking into accidental life insurance cover, it’s important to think about whether accidental insurance is worth having in your particular situation. As we’ve mentioned before, all life insurance decisions including how much life insurance do you actually need, all needs to be based on your personal situation. To us, it certainly is a worth having as you will have the piece of mind that should you pass away in an accident, all your financial obligations will be met.

Compare Life Insurance for the Best Accidental Life Insurance Cover

So now you know a little bite more about accidental life insurance cover and what does accident insurance cover. Before you buy life insurance, why not take the opportunity to compare life insurance and find the best life insurance policy for you from our panel of providers. You’ll feel a lot more secure knowing your family will be protected should the unexpected happen.