What is Accidental Death Benefit Insurance?
Accidental Death Benefit (ADB) insurance can be purchased as a rider on a life insurance policy or on its own, depending on the life insurance company and their available products. ADB insurance is exactly what it sounds like: you purchase an insurance policy that pays a benefit upon your death that is the result of an accident The amount you can purchase however, may not be as much as through a traditional life insurance policy.
If purchased as a rider on a life insurance policy, you might also hear it referred to as ‘double indemnity’ coverage. Accidental Death Benefit or ADB insurance (own its own) can be offered through life insurance companies, banks, credit unions, and credit card companies too. It can be a cost effective option as well, as the insurance will be far less expensive than life insurance alone.
Accidental Death Benefit as life insurance might be a good option for you if you:
- Work in a hazardous field – construction, for example, if heavy machinery is used,
- Work in an area where you’re on the road driving a lot, or as a commuter,
- Work in a field that you fly (as a commercial passenger) often.
The definition of ‘accidental’ would not include (also called exclusions) death caused by an illness, an act of war (if you’re in the armed services or a contracted civilian), and may not include any extreme or hazardous activities you participate in (racing, scuba diving, mountain climbing, drug or alcohol use). If you are a pilot, this occupation would very well be excluded too.
The Accidental Death Benefit insurance policy or ADB rider would clearly define what would be covered accidents, as well as the definition of exclusions. It is very important to read all documentation and ‘fine print’ when shopping and applying for your insurance.
About the author: Melanie Tretheway has been in the life insurance business for over 30 years. She is a mother of two who loves baking, reading, gardening, and taking care of her family. Melanie takes great pride in making sure you are informed, especially when it comes to choosing the right life insurance policy for your family. You can contact Melanie at 1-800-651-1953 or MTretheway@Pivot.com.