Accident life insurance also known as "accidental death" insurance, or "accidental death and dismemberment" insurance (which is partly also health/disability insurance), it is types of life and health insurances coverage in case of the insured suddenly death or injure caused by accident.
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Accidental Death Policy
Accidents happen in all parts of the world, no one knows when it will happen and how serious it will be. No matter how careful you are, things can go wrong, accidents are unpredictable. Everyone had this experience before, but thank God it was not serious, otherwise we wouldn't be around. We hope that bad luck leaves us far away and accident never happens to us, but ask yourself, can you prevent it?
Take for example; road accidents occur in every country everyday, no one can be sure he or she can escape it. If you are a careful driver, but there are full of reckless drivers on the road, even if you don't collide them they will collide you.
I had a very unusual experience; a crow hit my car windscreen when I was driving, it then fell on the road with two legs kicking in the air, I wondered was the crow blind or it was a suicide because the female crow left him? Or it was a stunt crow trying to show its flying skill? But one thing for sure, he did not buy accidental death insurance.
Accidental death benefit
If a person purchased a life insurance and with an additional accidental policy, the beneficiary will benefit the double indemnity in the event of the insured's death resulting from an accident. If he survived from the accident but with injury, a percentage of compensation will be made by the insurance company to the insured, this will depend on how serious was the injury.
Accidental death benefit rider is very inexpensive
If someone is buying a life insurance policy, the agent will normally ask him to add an accidental death benefit rider, because the life insurance never covers against accident. In the event of accident, the insurance company will not compensate the insured for his injury, but with this additional policy the buyer will receive compensation if he suffers injury resulting from accident.
For anyone whose occupation is hazardous, it is advisable to add this inexpensive policy to his life insurance, because if he injures badly during working, he is unable to work, and thus loses his job and livelihood. Anyone who purchased a life insurance without accidental death benefit rider can add it later, because this policy is renewable annually.
Accidental death insurance is crucial because accidents are unpredictable; know more about this policy by a click on accidental death or accidental insurance, or visit us at http://www.indianapolislifeinsurance.net
Article Source: http://EzineArticles.com/?expert=Vincent_Funfatt_Yeong
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Adding an accidental death and dismemberment rider to a term life policy is an ideal way for those who need extra protection to get combined and comprehensive coverage.
Accidental death and dismemberment riders are also known as “A D & D Riders” as well as “Multiple Indemnities.” Multiple indemnities mean that an insurance company will pay a multiple of the policy's face value. This is the amount that the policy would pay to the beneficiary in the event of the death of the insured person.
One common example of indemnities is double indemnities. This pays an equal amount to the face value of the policy so if the insured person dies in an accident, the beneficiary receives the policy face value and the A D & D Rider face value, which is twice as much as the original amount.
Additional Occurrences Covered by an A D & D Rider
Depending on the rider coverage you choose to add to your term life insurance policy, A D & D Riders may also cover loss of sight or the loss of one or more limbs. Of course, you would have to double check the provisions of your policy as each carrier stipulates specific designated time frames when payment can be received from the date that your accident occurred. For example, imagine an insured person was in a work accident where a crate fell on the insured person’s legs, damaging the limbs enough so that their legs needed to be amputated a few weeks after the accident occurred. Usually the coverage period would depend on the state in which that the policy is drawn, however, a 90 day waiting period after the limbs are amputated is common for this type of rider.
The most important thing to keep in mind is that A D & D Riders do NOT cover death by any form of illegal or crime related activities. This type of rider also does not cover death by suicide or death by a malfunction of the body. An example of “malfunction of the body” would be someone that suffered a stroke or heart attack while driving. If the heart attack or stroke occurred before the accident and the accident was the result of that bodily malfunction, death as a result of the accident would not be covered. Accidental death means that an unforeseen circumstance caused death that is unrelated to the body. The death had to have been unexpected. This is where the term life insurance policy becomes important. While the insured would not benefit from the rider, they would most certainly benefit from the term life insurance policy.
Aside from accidental death, A D & D riders also cover dismemberment. In the case of the accidental loss of one arm or one leg only one half of the death benefit would be paid to the insured. In the event that the insured person suffered the loss of two or more limbs (combination of arms and legs), then that would result in the entire face value (death benefit) being paid to the insured. In this event, the A D & D Rider would be terminated or waived because the entire face value of the death benefit/term life insurance policy would have already been paid out. Most A D & D Riders also include the sudden loss of vision. The same principles apply. If one eye is lost only one half of the benefit is paid out. If both eyes are lost then the insured will receive the whole face value of the death benefit.
A D & D Riders are important to consider adding to term life insurance policies especially if you use your body to earn your livelihood. Make sure to get a term life insurance with rider quote from a few different carriers to ensure the best rate.
Sharon Taylor writes articles for eQUOTE Life Insurance. eQUOTE is a leading Internet life insurance company providing families with no-obligation term life insurance quotes and other helpful family insurance resources since 1999.
Article Source: http://EzineArticles.com/?expert=Sharon_Taylor
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