Accidental Death and Your Insurance

Anyone looking for life insurance is probably familiar with the term ‘double indemnity’. Normally used in conjunction when discussing an accidental death benefit, the phrase quite literally means the death benefit of your policy doubles if you die from an accident. The accidental death rider is probably one of the best values someone with a policy can have to add to their existing policy. Even though it’s true that the rider doubles your death benefit it may even be possible to purchase and add multiple accidental death riders, effectively tripling the amount of the benefit should you die due to accidental causes. For a small jump in your premium it might be worth considering.

As with any insurance, it is very important to keep paperwork and/or company name available to your beneficiaries when the time arises. It is as simple as registering on a life insurance database to guarantee this information will never get lost and become a lost life insurance policy.

Why would you want to purchase the accidental death rider in the first place? Statistically, one partner of a young family is more likely to die due to accident than from anything else. With a young family it’s certainly worth adding to your policy. While relatively young adults do sometimes die from disease or illness they’re more likely to die in an automobile accident on the highway or even on the job. Some jobs are certainly more dangerous than others. Working with heavy machinery, such as construction equipment, is only one type of job where you could be endangered or exposed to a situation where it’s possible to be seriously injured to die unexpectedly and accidentally. Certainly it would warrant adding the accidental death rider to the policy if that were the case for you.

Some of us are just plain more adventurous and thrill-seeking than others. Some activities or hobbies expose us a little more freely to the chance of dying accidentally. Some insurance companies won’t even issue a policy to someone who routinely participates in hobbies or activities like mountain climbing or skydiving. You will almost certainly be paying more for your policy, at any rate. And the double indemnity rider probably isn’t going to be viable if your accidental death was caused by your own irresponsible and reckless behavior – a drug overdose or some similarly risky act. In those types of instances, the policy provider is only going to be responsible for the original death benefit described in the policy. The accidental death rider also probably won’t last for the lifetime of the insured; the rider typically runs out around age 65 or 70, depending on the insurer and the type of life insurance policy.

Regardless of how old you are you need life insurance. The main goal of any life insurance policy is to protect the remaining family and dependents, be it for protection from financial loss, leaving them the ability to pay for final expenses or other expenses yet undiscovered. Most of us aren’t in the position to provide all the financial needs our dependents are going to have when we’re gone. The accidental death rider is an inexpensive addition to any policy and is a good ‘just in case’ to have at your disposal.

Until next time,Michael Hartmann
Tweeter: @FindurPolicy

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