Should Seniors Buy Accidental Death Life Insurance?

Accidental death life insurance is a simplified version of a life insurance policy. When looking for elderly life insurance, you may stumble across this type of coverage. What does it mean? Is it good for you? These are all questions we will answer today.

What does accidental death mean?

happy_senior_coupleAccidental death riders are usually bought with a life insurance plan. These riders will double the death benefit guaranteed under a policy, if the insured dies in an accident. An agency is free to define what they mean by “accident” and all the situations in which the benefit is doubled are listed in the policy’s terms.

Life insurance and accidental death and dismemberment insurance are two different policies. The first type guarantees a death benefit that will be paid to the insured’s beneficiaries after the insured passes away. The cause of death does not matter (except for suicide). Accidental insurance will only pay proceedings if the cause of death was strictly an accident. It is a simplified version of a normal life insurance plan. Accidental death is a lot cheaper, but it does not have all the benefits.

Do you need it?

Accidental death is the fifth leading cause of death in the U.S. Among seniors, falling is the major cause of accidental death and injuries. If you drive or travel often, dying in an accident is more likely. It makes sense to buy accidental death insurance during retirement. The costs are low and you will be able to support the policy.

A policy will also pay proceedings for dismemberment. The amount paid for losing a leg or an arm varies. An agency will pay more proceedings according to the seriousness of the injury. Losing an arm is considered more serious than losing an eye.

You can also purchase elderly life insurance and have accidental death as a rider. In this situation, if your cause of death is an accident, the death benefit doubles. This rider will come at an extra cost, but it will not make the policy expensive.

Things to avoid

Accidental death insurance is affordable, but it provides coverage under exact and limited circumstances. What an agency defines as an “accident” is very important because only in those conditions your beneficiaries are entitled to proceedings.

Avoid purchasing a policy that does not specify exactly the situation in which your beneficiaries are eligible for payments. A loose term like “accidental” is not safe as an agency may twist the terms and you beneficiaries will have to face a long and strenuous battle.

Also, avoid purchasing accidental death from an agency that mistreats its customers. Always read reviews to see which provider processes claims faster and has more transparency.

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