When looking into ways to protect your loved ones in the event of your death, you’ve probably come across many options, including accidental death insurance and life insurance. But what’s the difference between the two?
Simply put, accidental death insurance specifically focuses on providing a payout in the event of death due to an accident, while life insurance provides coverage regardless of the cause of death. Let’s walk through the details of these coverage types to help you understand which will best suit you and your loved ones’ needs.
What is accidental death and dismembership insurance?
Accidental death and dismemberment (AD&D) insurance is a type of coverage that provides financial protection in the event of an accident resulting in death or severe injury. Unlike traditional life insurance, which covers all causes of death, AD&D insurance specifically offers a lump-sum payment to the policyholder or their beneficiaries if the insured person dies or suffers from dismemberment due to an accident. This policy type can provide additional coverage for unexpected accidents that may not be covered under a standard life insurance policy. It can be purchased as a standalone policy or as a rider to an existing life insurance policy, making it a flexible option for increased protection.
What is an accidental death benefit?
An accidental death benefit (ADB) is a specific provision within a life insurance policy that provides an additional payout to the beneficiary if the insured person dies as a result of an accident. This benefit is usually offered as an optional rider that can be added to a standard life insurance policy for an additional premium. The purpose of an accidental death benefit is to provide extra financial protection to the policyholder's loved ones in the event of a sudden and unexpected accidental death.
The payout from the accidental death benefit is typically made in addition to the death benefit provided by the life insurance policy itself. While you can have AD&D coverage without having life insurance, adding an accidental death benefit as a rider to your life insurance policy can offer your beneficiaries more protection and financial security than either standalone option.
Is accidental death insurance worth the cost?
Whether or not accidental death insurance is worth the cost will depend on your unique needs and situation. While AD&D insurance can offer you peace of mind that your loved ones have some financial protection in the event of an accident, other options, like life insurance, usually offer more to your beneficiaries. For example, if you qualify for term life insurance, it typically offers more financial security, benefits and affordability than AD&D insurance. If you already have life insurance coverage, you can consider adding an ADB rider to your existing policy for more comprehensive protection.
SelectQuote Can Help You Choose Between AD&D Insurance and Life Insurance Coverage
When it comes to protecting your loved ones, you have several options to consider. With your unique needs and priorities, finding the right policy can feel overwhelming. That’s where SelectQuote can help. Our licensed insurance agents will take your circumstances and budget into account to compare rates from many of the nation’s most trusted carriers in just a few minutes. They’ll walk you through the process to help you find the best coverage for you and your loved ones.
