At iFindLifeInsurance.com we often get asked what the difference is between term life insurance and accidental death insurance(ad&d).
The quick answer is if you have the standard term life insurance policy this will protect your family if you pass away due to natural or accidental causes. With the accidental death insurance policy (ad&d) it will only protect your beneficiary if your death is due to an accidental cause.
In this article we will further explain:
- The basics of term life insurance
- The basics of accidental death insurance
- Life insurance vs ad&d the main differences
- Steps to secure accidental death insurance(ad&d)
- Steps to secure term life insurance
1. The basics of term life insurance
Term life insurance will payout to your beneficiary when death is due to an accidental or natural cause. Since the policy will cover natural causes it will have a more in-depth review of your health and lifestyle profile. Depending on your age and the amount of coverage you wish to apply for the policy can be secured with or without a health exam. The term of the policy is the length of time you would like to have the coverage in place for. We have options that will keep your premium rate and coverage amount the same even as you get older or develop new health conditions. You can select a time from 1 year to 40 years depending on the needs of your family. This keeps the policy price affordable and you only pay for the time that you need the protection in place. With most term life insurance
2. The basics of accidental death insurance
Accidental death insurance(ad&d) will only payout to your beneficiary when death is due to an accidental cause. This policy will be much easier to qualify for since there is no review of your health or lifestyle. There will never be any exam required or health questions asked. You cannot be turned down making the accidental death policy a great choice if you have ever been declined for life insurance coverage or thought you would not be able to secure coverage due to a pre-existing illness or hazardous job. This policy is popular for people who travel a great deal. Also if you commute or are a driver for work it is often smart to add some additional accidental coverage protecting this risk. Many clients get the accidental policy when they can’t qualify for term insurance. If they become eligible for term insurance in future years they can always cancel the accidental coverage or keep it as a supplement to any new term insurance.
3. Life insurance vs ad&d the main differences
As we discussed the term life insurance will cover you for both natural causes and accidents so it is prefered vs the accidental death insurance(ad&d) only covering accidents. The term life insurance will be more difficult to secure and qualify for. Term life insurance can also be higher costs than the accident only policies. Making the accidental death insurance coverage an alternative to term when you can’t qualify or an inexpensive way to secure additional coverage needed. The accidental coverage can also be put in place much quicker than the term life. Accidental deaths occur often and are a more likely cause of death for younger people than natural causes. Some of the most common accidents are motor vehicle crashes, falls, poisoning, drowning and fires. Some accidental policies will also pay out double the death benefit if death was to occur as a fare-paying passenger on an airline.
4. Steps to secure accidental death insurance(ad&d)
Accidental death insurance is extremely simple to secure. The amount of coverage most clients secure is $500,000 but some people will opt for only $250,000 or $100,000 if the higher amount will not fit within their budget. Most people are surprised though just how affordable the coverage can be. Once you submit your application with one of our agents over the phone that starts the process. The application can be done quickly in 10 minutes or less and you will be able to sign right on your phone or computer requiring no printing on your part. Normally the checking account used to pay for the policy will be charged immediately and then set up for direct debit monthly so you will not have to worry about forgetting to mail a check. The full policy package will arrive by mail for your review and safe keeping. If you would like higher amounts of coverage you can also secure the accidental coverage with multiple carriers and our agents can show you the best options for this.
5. Steps to secure term life insurance
Term life insurance will have more requirements to qualify for a policy. Since it is covering a great deal more than just accidents. We specialize in getting clients approved even if they have been declined in the past by other life insurance carriers. Our agents will help you find the
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