Accidental death insurance, also known as accidental life insurance, is a type of coverage that pays out a benefit in the event of death or serious injury caused by an accident.
An accidental death insurance policy is not as well-known as regular life insurance, but it can still be important. It can help an individual or their family if there is a tragic accident.
In this article, we’ll explore the key factors influencing accidental life insurance rates and provide tips on how to get affordable coverage.
Accidental Death & Dismemberment (AD&D) Insurance Rates
Monthly Accidental Death Insurance Rates (Males Ages 18-70)
|Coverage||Ages 18-50||Ages 51-60||Ages 61-70|
Monthly AD&D Rates (Females Ages 18-70)
|Coverage||Ages 18-50||Ages 51-60||Ages 61-70|
The tables above show the rates for accidental life insurance for men and women across three broad age brackets. The first table shows the rates for males, with the second table showing the rates for females.
Naturally, AD&D rates increase as the coverage amount increases and as the age of the individual increases. For example, rates for $100,000 of coverage for a male between ages 18-50 would be $16.19 / month for $100,000 of coverage, while a man in his mid 60’s would pay $22.06 per month for the same coverage.
When comparing male vs. female rates, you’ll see that females have lower rates. For example, if a woman between the ages of 18-50 wants $50K in coverage, she would pay $7.53 while a male of the same age would pay over 40% more ($10.29 per month) for the same coverage.
Return of Premium Rider
Finally, while not every AD&D policy will have this, the accidental death insurance policy whose rates we sampled above (Mutual of Omaha’s Guaranteed ADvantage policy, to be specific) has a particularly attractive add-on feature.
It offers what is called a “return of premium” rider. If you purchase this rider, you’ll pay more upfront, but you’ll put yourself in a win-win situation.
Not only will your policy pay out a death benefit if you die an accidental death, but if you outlive the term of the policy (you cannot renew this and most accidental death policies beyond age 80), then Mutual of Omaha will refund 100% of the premiums you’ve paid.
The table below shows the rates men and women 18-50 would have to pay to purchase the specified amount of coverage PLUS the return of premium rider. Note that this rider is not available to individuals over the age of 50.
Monthly Rates for Accidental Death Insurance + ROP Rider
|Coverage||Male 18-50||Female 18-50|
What Does Accidental Death Insurance Cover?
Accidental life insurance policies typically provide a lump-sum death benefit to the policyholder’s beneficiaries in the event of death. They may also provide benefits for certain types of serious injuries, such as loss of limb or sight.
The accidents covered by accidental life insurance policies can be different depending on the policy and the insurance company. Some examples of accidents that are often covered include:
- Motor vehicle accidents
- Slip and fall accidents
- Accidents while participating in recreational activities (e.g. skiing, hiking, etc.)
- Accidents while on the job
- Travel accidents (e.g. plane crashes)
What Does Accidental Death Insurance NOT Cover?
Some types of deaths or injuries are not covered by accidental death insurance policies. This means the insurance company will not pay you any money if these things happen to you. Some examples of what is not covered by accidental death insurance policies include:
- Deaths or injuries that result from illnesses or natural causes
- Suicides or self-inflicted injuries
- Criminal activities or acts of war
- Injuries or deaths that occur while under the influence of drugs or alcohol
- Injuries or deaths resulting from participation in certain high-risk activities (e.g. skydiving, rock climbing, etc.)
- Injuries or deaths that occur while engaging in illegal activities
- Injuries or deaths resulting from pre-existing conditions
It is important to read and understand the policy’s terms and exclusions before buying it as each insurance company may have different terms and coverage options.
Some policies may have special rules that are not listed here.
Who Is Accidental Death Insurance For?
Accidental death insurance is worth it for anyone, but it may be especially helpful for some people. Some examples of people who might need this type of insurance are:
- Individuals with dangerous occupations: People who work in high-risk jobs, such as construction workers, first responders, and pilots, may be at a higher risk of accidental death and may benefit from the added protection of accidental death insurance.
- People who do dangerous things for fun, like rock climbing, skydiving, or motorcycling, might need this type of insurance.
- You should get coverage if you have someone who depends on you financially. This will help protect the person financially if something happens to you and you die.
- Individuals who do not have life insurance should get accidental death insurance. This is a good option for people who cannot get traditional life insurance for health or lifestyle reasons or for those who cannot afford a traditional policy.
If something happens to you and you die, your family might have a lot of trouble paying back your mortgage or other debt. But if you have insurance that covers this, your family will not have to pay anything.
The decision of whether or not you need accidental life insurance depends on your circumstances, risk factors, and financial situation.
Talking to an insurance agent is a good idea to help determine if this coverage is necessary.
Are There Alternatives to Accidental Death Insurance?
There are several alternatives to accidental death and dismemberment insurance (accidental life insurance) that may provide similar coverage or protection. Some examples include:
- Traditional Life Insurance: Traditional life insurance pays out a benefit if you die. It does not matter how you die. Even if it is an accident or from natural causes, your beneficiaries will still get money from the policy. While it might not be as specific as accidental life insurance, it can provide more protection for your beneficiaries.
- Disability insurance: Disability insurance is a type of insurance that gives you money if you can’t work because you are sick or hurt. It helps you to have money while you are getting better.
- Health insurance: Health insurance can help pay medical bills if you accidentally get hurt. It can also help pay for your treatments to get better.
- Personal liability insurance: Personal liability insurance protects you if you have an accident that hurts or kills someone, which is your fault.
Ultimately, whether or not accidental life insurance is the best option for you will depend on your circumstances, risk factors, and overall financial goals and situation.
Common Misconceptions About Accidental Life Insurance
- Believing it is unnecessary: Although some people may not think they need it, accidental death coverage can be helpful. It protects you from things that regular life insurance might not cover.
- Thinking that it is too expensive: Some people think that accidental death insurance is too expensive. But the price depends on how much insurance you want, how old you are, what kind of job you have, and other things. You should compare rates and talk to an insurance agent to determine how much it would cost.
- Assuming that coverage is limited to specific accidents: Some think that accidental death insurance only applies to specific types of accidents, like car crashes or falls. But it depends on the policy and the insurance company. It can cover a lot of different types of accidents.
- Believing that accidental life insurance will cover natural death or illness: accidental life insurance pays money to your family if you die in an accident. This differs from life insurance, which pays money if you die from natural causes or illness.
- Believing that accidental life insurance is only for high-risk individuals: While accidental life insurance may be particularly valuable for individuals with dangerous occupations or high-risk hobbies, anyone can benefit from this coverage. It’s important to evaluate your risk factors and speak with an insurance agent to determine whether accidental life insurance coverage is right for you.
It is important to dispel these misconceptions as it will lead to a better understanding of what this type of coverage can offer and how it can protect you and your loved ones in the event of an accidental death.
Tips on Shopping for Accidental Death Insurance
When shopping for accidental death and dismemberment insurance, there are several tips to keep in mind to help you secure the best coverage at a price you can afford:
- Compare rates: Shop around and compare rates from different insurance companies to ensure you get the best deal.
- Maintaining a healthy lifestyle: Some insurance companies may offer discounts to policyholders who maintain a healthy lifestyle, such as non-smokers or people who exercise regularly.
- Understand the exclusions: Make sure you understand the exclusions of the policy and that it aligns with your needs and covers the types of accidents you’re most likely to encounter.
- Read the policy’s terms and conditions: Before signing up for a policy, read it carefully to ensure that it meets your needs and that you understand the coverage you’re getting.
- Consult with an insurance agent: An insurance agent can help you understand the different options and help you find the best coverage for your specific needs and circumstances.
By following these tips, you will be better equipped to make an informed decision about accidental life insurance and find a policy that provides the protection you need at a price you can afford.
If you want to get the best rate for AD&D insurance, make sure to know what factors cause higher rates vs. lower rates, and what you can do to ensure that your rates are as low as possible.
We at GetSure always recommend comparing rates from various companies before you decide to purchase. You should also consider getting other types of insurance from the same company (bundling), as this can also bring your price down.
If you have any questions, please don’t hesitate to reach out to us by phone or email.
The GetSure Team