Most people shopping for life insurance protection want guaranteed life insurance, rather than accidental death life insurance. Accidental death life insurance only pays if you die because of accidental or unintended death. Accidental death life insurance is a niche product that should be used appropriately and only when you understand the advantages and limitations of these policies.
You don’t have to go far to find people who say accidental death policies are the worst life insurance policy product available (although many people say the same things about whole life insurance policies). Nothing could be further from the truth. Accidental death life insurance policies are intended to protect against accidental death (the #1 cause of fatalities under age 45).
It may be beneficial for you to view all the types of life insurance as specific tools in an insurance buyer’s toolbox. Just as a carpenter uses many tools to build a sturdy home, people can use many types of life insurance policies to build a sturdy financial plan to protect them their loved ones and assets when they die.
Should accidental death be my first life insurance purchase?
No. If you have loved ones and assets that need to be protected should you die unexpectedly, guaranteed life insurance coverage should be your primary objective and your first life insurance purchase.
For most people, a term life insurance policy is the most affordable and appropriate-insurance product for first-time shopper.
Term life insurance is an ideal candidate for people ages 30 to age 65. Most life insurance shoppers purchase life insurance in this age range “IF” they die. For people over the age of 65, their priorities change when purchasing life insurance and search products that will protect their homes and families “WHEN” they die.
So, your first priority when shopping for life insurance is to purchase an affordable 15 to 30-year term life insurance policy. The earlier you purchase this insurance and the healthier you are, the lower your life insurance rates will be.
When should I buy accidental death life insurance?
Accidental death life insurance is an ideal product to supplement other life insurance products. It is also one of the only life insurance products available to people with significant health problems, or who cannot qualify for other life insurance products. It is also a very affordable option if you have children in their teens and older.
How does accidental death supplement term life insurance or other life insurance products?
Many people have employer-provided life insurance protection. We highly recommend you take advantage of the employer-provided life insurance opportunities available to you. Usually, life insurance is provided at no cost to the employee. An employee can often purchase additional life insurance through their employer in multiples of two, three, five, or seven.
If you earned $50,000 a year, and your employer allowed you to multiply your life insurance coverage five times, you would be eligible for $250,000 life insurance. Your employer would pay for your first $50,000 in life insurance, and you would have to pay extra money for the additional $200,000 of life insurance.
Employer-provided life insurance is an affordable way for employees to have access to affordable life insurance coverage on a temporary basis. But there is a downside to this life insurance.
As an employee, you have no control over the amount of life insurance offered and if this life insurance is even offered. Also, your employer can change or eliminate your coverage, leaving you with no life insurance protection. It is a temporary life insurance.
Many people in this situation gladly accept their employer’s annual salary equivalent of life insurance. Let’s face it, one year’s worth of income is not a lot of money to protect your home, family, and loved ones!
Our recommendation would be to purchase additional term life protection that will offer guaranteed coverage for your spouse, partner, and loved ones.
Often, even though the term life insurance coverage is very affordable, people don’t want to spend that much money. This is where accidental death life insurance can be beneficial when a loved one dies unexpectedly in an accident.
If you had $50,000 in employer-provided life insurance and $250,000 in accidental life insurance, your loved ones and family would be paid $300,000 should you die in an accident.
Accidental deaths catch families off-guard, leaving them particularly vulnerable to financial ruin within a short period after a death.
If you have a loved one killed in an auto accident (or any accident), you will be instantly plunged into a world of sorrow and financial devastation. Accidental life insurance policies can help prevent this catastrophe from happening.
I have health problems and cannot qualify for traditional life insurance… Can I get accidental life insurance?
This is where accidental death life insurance shines. If you have health problems that are significant enough to restrict your ability to purchase traditional life insurance products, accidental death life insurance is your best option.
Some people are too large to qualify for traditional life insurance policies. Accidental death life insurance has no restrictions on the height or weight of the applicant. There are even accidental death life insurance policies available that will cover people with terminal illnesses, such as cardiac problems, cancer, or even AIDS.
Although everyone with these conditions would like to qualify for traditional life insurance products, it is often not available or too expensive to fit comfortably into someone’s budget.
Accidental death life insurance solves these problems magnificently.
I’m young and healthy and don’t think I need regular life insurance.
Every person we meet who is old and unhealthy was young and healthy at one time.
Your current age and health have no bearing on your health in your later years of life. If you’re young and healthy and have no debt, no children, or no love ones you must care for, with no other financial responsibilities, you may not need life insurance.
Many people these days have children. Many people these days have college loans they must repay. Many people these days have children who they’ve cosigned for college loans they must repay should something happen to the child. If your child has $35,000 worth of college loans to pay off, and you have cosigned for them, and they die, can you and your family absorb an additional $35,000 of debt? Most families cannot.
Because most young people are more likely to die because of an accident and illness, accidental death life insurance policies are the most affordable life insurance option available. Accidental death life insurance policies, often, can be had for pennies a day.
If you had a child age 18 to 25 die in an accident, more than likely, you would have to pay expenses related to their death. This could be funeral costs, medical costs, college loans you cosigned for, automobiles cosigned for, etc. And affordable accidental death life insurance policy would easily solve most of these problems. $50,000 is more than enough coverage for people in this age range to protect their families.
I have $250,000 of term life insurance. Is that enough?
$250,000 is a lot of money, but it’s also not a lot of money.
If you make $50,000 a year, that only replaces your income for five years for your spouse, partner, or loved ones. That money will disappear fast if you want your home to be paid off and your children to go to college. Purchasing an extra $250,000-$400,000 in accidental life insurance is an affordable option that will set up your family well financially in the coming years.
With most individuals and couples being severely underinsured with life insurance protection, accidental death life insurance provides an affordable option that fits in just about everybody’s budget.
What about those distracted and drunk drivers?
You don’t have to look hard while driving on the road to see people talking on the phone, texting, and multitasking behind the wheel. If you don’t think you are putting your life at risk every time you drive your automobile out of your driveway, you’re sadly mistaken. Accidents are the number one killer of people up to age 60.
One cannot argue with the mortality records and statistics showing you are more likely to die of an accident between the ages of 18 and 60 than any other cause. With that in mind, accidental death life insurance may be inappropriate and affordable choice for you or your family members.
If you need life insurance, call us to help you understand your accidental life insurance options.
At Life Wealth Win, we specialize in healthy to high-risk accidental life insurance cases. We can help you understand your life insurance options.
We work with clients across the nation to get the best life insurance rates possible. If you are looking for accidental death life insurance, we can help you get the best life insurance rates!