Accidental Death Benefit:

This post is designed to provide the reader with general educational information concerning an accidental death policy or benefit. Please keep in mind that this information is being provided for informational purposes only and is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice.  If you have any questions concerning this post or its contents, you should seek the assistance of a qualified professional.

There are basically two types of accidental death benefits that can be paid to policy beneficiaries upon the accidental death of an insured.  The first flows simply from the fact that the insured under an “accidental death” policy dies in an accident.  This type of policy is different from a general life insurance policy.  The second arises when the policy owner purchases, as an add-on, to his or her life insurance policy, an accidental rider, which usually contains a double or triple indemnity provision, which pays twice or three times the face amount of the life policy to the beneficiary. 

Exclusions, relating to the accidental death policy or rider, typically apply to death or injury caused by war, illegal activities or noncommercial aviation.  Time and age limits can also apply.  It is for these reasons that it is important for the purchaser, of the insurance, to read and make sure that he or she understands the terms of the insurance contact that is being purchased.  An insurance policy is nothing more than a contract between the insurance company and the policy owner.  If you have any questions concerning any provision of the contract, you should seek additional assistance over and above the sales representative for clarification.