Is Accidental Death Insurance Worth It?

Is Accidental Death Insurance Worth it?

Planning for the end of your life can be an important step to help protect your family’s financial future. While more than half of Americans have a life insurance policy¹, you may also consider accidental death insurance (also known as accidental death and dismemberment insurance, or AD&D insurance). Aflac does not offer accidental death insurance, but we do offer life insurance with an accidental-death benefit rider that pays an additional benefit in the event of your passing.

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Table of Contents

Key Takeaways

AD&D insurance pays benefits if the policyholder accidentally dies or loses body parts or functions.²
AD&D insurance may be a worthwhile policy if you have a high-risk job or lifestyle or want to boost your overall death benefit for financial protection.
Aflac offers life insurance for individuals and families with an accidental-death benefit rider that can help give you additional peace of mind.

How accidental death insurance works

AD&D insurance pays benefits in the event of a covered death or dismemberment. The specifics vary considerably between insurers, and policies typically contain a schedule that details the terms and percentages of benefits and covered events. There are often considerable exclusions and caveats, like a death occurring within a specific period, but some of the more common events that are covered include:²

Accidental death due to circumstances such as exposure to the elements, traffic accidents, homicide, falls, drowning, and accidents involving heavy equipment
Loss of a limb
Partial or permanent paralysis
Loss of use of specific body parts, such as the loss of sight, hearing, or speech

How much does accidental death and dismemberment insurance cost?

AD&D insurance policy costs vary based on a range of factors, including age, lifestyle, and insurer. As such, there isn’t much clarity on average prices in the market. That said, AD&D insurance policies generally have more reasonable premiums than whole life insurance policies.³

Accidental death insurance vs. life insurance

There are some key differences between accidental death and life insurance policies.

Coverage amount

Accidental death tends to have smaller coverage amounts than life insurance policies, meaning they have smaller death benefit payouts.

Coverage length

If you have permanent life insurance, it covers you for your entire life as long as you pay monthly premiums. AD&D insurance often has specific, shorter coverage terms.

Coverage details and limits

AD&D policies will usually have more limitations than life insurance policies. They don’t cover death by natural causes or illness, whereas life insurance policies do. They also don’t typically cover death by suicide, while most life insurance will if the policy has been in effect for longer than a certain time period, such as one or two years. There may also be limits on what constitutes a covered accident or a requirement that the insured’s death occurs within a specified time frame to receive a death benefit.

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Is AD&D insurance worth it?

Here are some instances where AD&D insurance may be worth it:

You have a high-risk job: Many employers in high-risk industries like construction, trucking, or manufacturing offer group accidental death insurance policies. These policies are certainly worth it if there’s a risk of death on the job.
You enjoy high-risk hobbies: If you enjoy high-risk hobbies like scuba diving, skydiving, or even seemingly safer activities like sailing, an AD&D insurance policy may be worth it.
The policy fits your budget: AD&D insurance policies generally come with reasonable premiums, so if this type of insurance fits your budget, it can be a good contingency plan.

Can I have both AD&D and life insurance?

You may have both an AD&D and a life insurance policy, and it may be beneficial to do so if you work a dangerous job or have dangerous hobbies. Having two separate policies with different insurers, however, can make paying premiums and keeping track of your records more complicated. If you don’t want to get two separate policies, consider getting life insurance from Aflac with an accidental-death benefit rider instead. This can be a more cost-benefit alternative that still gives you more comprehensive coverage for accidents.

Learn more about Aflac life insurance with an accidental death benefit rider

Accidental death insurance is often worth it if you live a higher-risk life. You can also consider adding an accidental-death benefit rider to an existing life insurance policy to help pay additional benefits in the event of a tragic accident. Aflac offers accidental death-benefit riders that can be added to our life insurance policies and help you prepare for the unexpected. Chat with an agent today to learn more about our coverage options and get a quote.

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