Accidental death insurance coverage – Do you actually need it?

Are you someone who is too scary about death and frets about the moment you’re going to die? Well we all come to the world knowing the fact that we have to die some day but should we be extra careful about this and should we go to the extent of insuring ourselves against the odds that our families or loved ones may face if we suddenly die? Given the increasingly large number of accidents that are occurring nowadays, people are becoming more sceptical about their lives. There are some things that we can plan for like college tuition and old age. But whether on the job or at home or somewhere between, accidents are beyond our control. That is the reason why so many people choose to supplement their existing insurance policies with a coverage named accidental death coverage. It is nothing but an affordable way to help ensure that your loved ones are taken care of if the unthinkable ever happens to you.

Why do you need accidental death coverage?

Yes, accidents do happen suddenly and without warning. But once it happens, family and near ones can find themselves faced with everything from paying for your unpaid mortgage to bearing your funeral expenses. With accidental death insurance coverage, they will keep receiving a significant benefit to help pick up with such sudden unplanned expenses. The 2 primary plans of accidental death coverage include:

  • Plan A which pays $25,000 ($500,000 for a Common Carrier accident)
  • Plan B which pays $125,000 ($250,000 for a Common Carrier accident)

On the other hand, there are many people who choose the added protection of the Family option, which offers an additional $125,000 (Plan A) or $75,000 (Plan B) for your spouse and $5,000 for your children.

Should seniors just cancel such policy as the chance of accidental death is pretty slim?

Yes, this is a rising concern among seniors who had opted for such coverage when they were young. Now that they’ve grown older, it is pretty sure that the chance of accidental death is quite slim for them. So should they cancel such coverage and save their dollars? The insurance experts think that buying an accidental policy coverage that won’t cover death from natural causes or illness is more like insuring your home for fires but not tornadoes. While you insure your home, you should make sure that you have coverage for all the major risks in that geographical area. The same is true while insuring your life. If the policy doesn’t cover your biggest death risks, you shouldn’t go for it. As for the accidental death policy that you already have, you shouldn’t keep it, provided you’re protected by your medical or life insurance policy.

While there are insurance experts who think that accidental death insurance coverage is one such coverage that shouldn’t be opted for ever, there are some others who feel that this is a pretty necessary coverage. You can sit with your personal financial planner and discuss your choices before taking the plunge.

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