When planning for the financial protection of your family and loved ones, several avenues of insurance exist. The one most often misunderstood is accidental death insurance. A lot of people are unsure of the benefits of accidental death insurance and are a bit misled by some myths; even if it is inexpensive insurance, many people do not see its usefulness. In this blog, we will try to dissect some of the myths surrounding accidental death insurance so that you can have a better understanding of how this policy works and be in a better position to take an informed decision for yourself and your family.
7 Common Myths About Accidental Death Insurance Debunked :
Accidental death insurance is very important, although not so widely understood, coverage that can offer your family important monetary aid in moments of an unforeseen tragedy. Unfortunately, many people have beliefs regarding accidental death insurance that prevent them from seeing its full potential. These myths breed a lot of confusion, indecision, and ultimately lead to wrong family security decisions. In this article, we wish to dispel all these myths and give the true picture concerning accidental death insurance. It is the intention behind these common myths actuarially of accidental death insurance, to enable you to better choose the right kind of coverage for your needs.
Common Myths About Accidental Death Insurance :
Myth 1: Accidental Death Insurance Only Covers Car Accidents
There is a common myth among clients that accidental death insurance indeed covers only the fatalities due to car accidents. Car accidents in themselves lead to innumerable cases of accidental death. However, accidental death insurance is a much wider realm, encompassing the myriad of accidents aside from the road ones.
The policy usually covers:
• Falls (home or work)
• Accidents occurring at the workplace
• Drowning
• Natural calamities (if death occurs through some catastrophic event)
• Accidental poisoning
• Injury or death by intentional means (e.g., robberies or assaults)
In short, if you happen to die from any of these accidents, as stated under your policy, your beneficiaries would be able to collect money. It is not restricted to a specific kind of accident and can provide certain sustenance in case any misadventure should strike us.
Common Myths About Accidental Death Insurance Myth 2: Accidental Death Insurance is Too Expensive
Another myth about accidental death insurance says that it is expensive and therefore out of reach for most people. In fact, accidental death insurance is usually much cheaper than life insurance. In a life insurance policy, you cover the death of the insured from any cause (including natural causes and illness); whereas, in an accidental death policy, you cover you for death due to accident alone.
Because the risk is more specific and limited to accidental death, the premiums for accidental death insurance are lower.
This is beneficial for younger persons, families, or people in high-risk jobs who want to insure their loved ones with an affordable premium. It can sometimes be taken as a good supplement to life insurance or for people who cannot qualify under conventional coverage schemes for reasons of age or health condition.
Common Myths About Accidental Death Insurance Myth 3: Accidental Death Insurance is the Same as Life Insurance
People tend to confuse accidental death insurance with regular life insurance, believing the two to be the same. Though both pay a defined sum for the benefit of the insured’s family on the death of the insured person, they have different characteristics.
• Life insurance pays for natural and accidental deaths, while accidental death insurance pays only for accidental deaths.
• Accidental death insurance is generally cheaper but has narrower coverage.
• Whereas life insurance requires an applicant to undergo a medical examination with a lengthy waiting period for the issuance of the policy, most accidental death insurance does not call for medical examination, thus being easier and quicker to obtain.
If you consider accidental death insurance, keep in mind that it does not replace life insurance; rather, it is a supplement to it and can help cover unforeseen costs arising from accidental death.
Common Myths About Accidental Death Insurance Myth 4 : Accidental Death Insurance Doesn’t Payout if You Die While Doing Risky Activities
Another myth that keeps many people from purchasing accidental death insurance is that if you induce death while engaging in risky activities (say skydiving, mountain climbing, or extreme sports), then there will be no payout on your policy.
Yes, while there are indeed some policies that exclude death resulting from certain high-risk activities, a good number of accidental death insurance policies will cover such death, as long as such activity is not excluded from the terms and conditions of your policy.
To put your mind at rest, do read the fine-print carefully for exclusions concerning hazardous activities. Some insurance firms have policies designed for high-risk jobs or activities, so you should also find a policy that suits your particular lifestyle.
Common Myths About Accidental Death Insurance Myth 5: If You Already Have Life Insurance, You Don’t Need Accidental Death Insurance
Most people believe that if life insurance is in place, then accidental death insurance is irrelevant. Life insurance, per definition, covers only deaths caused by natural reasons or illnesses, and this may prove to be inadequate to cover interviews for accidents.
In case you have adopted a high-risk job profile or lead an active lifestyle, accidental death insurance could be supplemental coverage that protects your family in the event of an accident. Thus, with the accidental death insurance payment, your family can cover funeral expenses, medical bills still unpaid, and debts – all without falling into a pit of financial lack.
Common Myths About Accidental Death Insurance Myth 6 : Accidental Death Insurance Doesn’t Cover Deaths from Suicide or Drug Overdose
Accidental death insurance, contrary to common belief, does not provide shelter against deaths ensuing from suicide or drug overdose. Life insurance policies enforce such dictates with exclusions but accidental death insurance may, in some cases, render some coverage.
A thorough perusal of the fine print of to the policy’s terms is required. While many accidental death insurance exclude compensation for cases of self-harm or death owing to drugs, the actual policy’s language will govern how much coverage is provided. Always contact your insurance for a thorough understanding of how your plan’s provisions apply.
Common Myths About Accidental Death Insurance Myth 7 : Accidental Death Insurance It is Restricted to High-risk Jobs Only
Accidental death insurance is one of the best covers for several people, especially those who work in extremely dangerous jobs, most commonly construction workers and truck drivers. The type of coverage doesn’t only apply to these classes of workers, though accidents can happen to any person, regardless of work, and accidents are statistically a primary cause of death in United States deaths.
Accidental death insurance is, hence an additional peace of mind to persons who lead active lifestyles or those who are waking up every day with fear that accidents will happen suddenly and without warning. It is a pretty cheap way of ensuring that your family has a back-up in case of an accident, regardless of what you do for a living or how you spend your life.
Conclusion: Debunking Myths from Fact
The myths regarding accidental death insurance are many: all of them causing confusion and fear in persons contemplating that kind of insurance. This article shall try to demystifying such myths while bringing optimum clarification as to how accident insurance actually works and how it helps policyholders and their families. Affordable accidental death insurance would be a big loophole for most consumers in the market looking for low-priced additional coverage for family members.
Finding out and understanding what the policy stipulates, exclusions have, and limitations would be very vital for you, however, to ensure the policy specifically suits your needs. Do not allow these assumptions to dissuade you from receiving the benefits your family deserves.
