What is Accidental Death Benefit and the Exclusions

For those who are looking for additional coverage to their life insurance policy, there are several clauses or riders that they may consider. One of them is known as accidental death benefit which may add a considerable amount to the benefits offered to the beneficiary. This type of policy is actually fairly common and while it usually does add to the monthly premiums, the amount of the benefits increase significantly.

Understanding accidental death benefit insurance definition, what it covers, and what it does not will help you make the best decisions in terms of choosing this type of policy.

What is Accidental Death Benefits?

This is the payment that is due to the beneficiary from an accidental death insurance policy. These are usually not stand-alone policies, but instead, a clause or rider that is part of a life insurance policy. In this type of policy, there is usually an additional benefit paid when the policyholder dies due to an accident and not just natural causes or illness.

Depending on the company that issued the policy, the accidental death benefit could extend up to 12 months after the accident occurred as long as it was the cause of death. For example, if the policyholder is in a car accident, the beneficiary could receive the accidental benefits even if the policyholder died from their injuries up to a year later.

How Does this Policy Work?

Adding an accidental death benefit rider to your life insurance should be a strong consideration for those who work in or near hazardous environments or their job exposes them to a higher than normal possibility of accidental death, such as those who drive on the road for long periods of time. Adding this type of rider to a life insurance policy can significantly increase the benefits.

Making a claim under accidental death may be a lengthy process as the deceased will in all likelihood undergo an autopsy and have the incident that caused their death investigated fully before the funds will be released. You will need to file the proper forms and the death must be declared accidental and fall under the coverage of the policy itself.

In addition, there are exclusions that you will need to be aware of before signing on to any policy of this type.

Accidental Death Benefit Exclusions:

There are a number of exclusions to this type of benefit. While the exclusions are specific to the company that issues the policy, the general ones include the following;

• Illness
• Suicide
• War
• Radiation
• Under the Influence of Drugs and Alcohol
• Overdosing

Another type of exclusion would be the injury an athlete suffers while participating in a sporting event. Plus, most riders of this type will end once the person reaches 70 years of age. You will need to go over all the exclusions that an individual policy may carry before choosing it for your needs.

Coverage for accidental death should be a consideration for those who face an increased risk during their daily lives.