Accidental death coverage and dismemberment coverage are an important part of an insurance offering. This form of insurance pays benefits in the event that you are seriously injured or die in an accident. It is paid out in addition to any other life insurance you may have, and is sometimes known as double indemnity insurance. In the United States and Canada (so essentially North America) accidental death is fifth in the ranking tables for causes of death. That means it’s a common and sensible precaution for drivers to include accidental death coverage in their policy.
Accidental Death Coverage – An Investment?
It needs to be clear that unlike some other forms of life insurance, accidental death coverage is not an investment vehicle. This means that when you take out accidental death coverage as an option in your policy, your premiums are only covering your sustained protection. If you do not, and let’s hope that you don’t, claim under the policy there is no cash rebate or annuity paid for the premiums you have paid during the term of your policy.
Insurance premiums generally rise over time and this is true of accidental death coverage as much as any other form of insurance. Terms and conditions for your accidental death coverage may also vary over time, and your insurer will contact you if this is the case. Many policies assume the consent of the client to these changes as long as they are minor and don’t substantially affect the coverage offered.
Accidental Death Coverage – Policy Exclusions
There is always a list of exclusions for accidental death coverage, which negate the insured party’s right to their accidental death benefit. These conditions are reasonable and in the case of auto insurance usually included; death caused by drug or alcohol abuse, or death caused by reckless driving by the driver concerned, or specific instances such as death caused by driving in a professional sporting event.
Accidental Death Coverage – Dismemberment
Many policies also include coverage which pays compensation in the event that a driver loses a limb, or sight, or suffers other serious injury such as paralysis. This compensation varies depending on the severity of the injury and what is explicitly stated in your policy.
Accidental death coverage gives you and your loved ones additional peace of mind, in the eventuality that you are killed in an automobile accident. It is an option to be seriously considered as part of your auto insurance.