Do You Need Accidental Death Insurance?

What is accidental death insurance? Learn why its a must have below. 

Summary:

Accidental Death Insurance is the most affordable type of life insurance and financial protection you can put in place to protect your loved ones and your assets. If you want to add additional, affordable life insurance to your financial plan, Accidental Death Insurance could offer you the additional coverage you and your family need. Accidental death insurance can help replace lost income and provide financial support for your family if you die as a result of external trauma to the body. Read on to Learn More.

What is accidental death insurance?

The accidental death of a loved one is devastating. Both for families and communities. Sadly, accidental death often comes with sudden and unexpected emotional and financial stressors - hospital bills, funeral and final expenses, legal fees, lost income, unpaid living expenses, the list goes on. All of which, your loved ones are left to manage while also grieving losing you.

This is why accidental death insurance is so important for people of all walks of life. The answer, at least in part, to the question "Why do you need accidental death insurance?" is: Accidental death insurance helps replace the loss of income and provides a financial safety net for your family if you die from an accident.

Who Needs Accidental Death Insurance?

The short answer, EVERYONE. This day and age, everyone is at risk of passing away unexpectedly in an accident. Whether falling at home, sustaining injuries in public, being the victim of a violent crime or being involved in a motor vehicle accident, accidents can occur at any time in any location. Motor Vehicle Accidents only account for a small percentage of the unexpected, accidental deaths of millions of people every year. According to The National Institute for Occupational Safety and Health (NIOSH)(1):

"Motor vehicle crashes are the 1st or 2nd leading cause of death in every major industry group.1

In 2020, 1,038 U.S. workers driving or riding in a motor vehicle on a public road died in a work-related crash (22% of all work-related deaths).1

Among these 1,038 deaths, the Transportation and Warehousing industry had the highest share (43%), followed by Construction (14%), Wholesale and Retail Trade (9%), and Administrative and support and waste management and remediation services (6%).1

An additional 536 deaths in 2020 (11% of all work-related deaths) involved workers driving or riding in a motor vehicle off a public road, or pedestrians struck by motor vehicles.1

Work-related MVCs are not just an issue for truck, bus, or taxi drivers. 56% of workers who died in 2020 were not employed in motor vehicle operator jobs.1

Of the 330 pedestrian worker fatalities in 2020, 41%

These numbers are even more staggering when we begin looking at other accidents that result in death. This is why accidental death insurance is so important for people of all walks of life. The answer, at least in part, to the question "Why do you need accidental death insurance?" is: Accidental death insurance helps replace the lost income of a loved one and provides a financial safety net for your family if you unexpectedly die from an accident.

How does accidental death insurance work?

Accidental Death Insurance is the most affordable, low cost type of life insurance and financial protection you can put in place to protect your loved ones and your assets. If you want to add additional, affordable life insurance to your financial plan or are concerned because you can't qualify for enough insurance to replace your income or the cost of your final expenses, Accidental Death Insurance could offer you the additional coverage you and your family need.

Accidental death insurance provides broad coverage for you and your family for a relatively low cost compared to other life insurance options. It covers accidental deaths that result from a covered injury, work-related or non-work related. Examples of things that are covered by accidental death insurance include but are not limited to:

• Car accident
• Plane Crash
• Drowning
• Train Crash
• Falling
• Homicide/murder
• Work related/non-work related accidents
• External trauma to the body

Accidental death insurance is not the same as traditional life insurance, but it can be used as a supplement to traditional life insurance. As the name implies, it is specifically designed to pay benefits when an unanticipated death occurs as a result of a covered accident. Accidental death insurance is also a great way for people who can't qualify for traditional life insurance or the amount of life insurance they desire to help protect their family's future in the case of their accidental death.

Unlike traditional life insurance, you can't be turned down for accidental death insurance due to health or occupations reasons, as long as you qualify based on your current age. Typically, you can purchase an accidental death insurance policy until age 70. (2)

Is accidental death insurance right for you?

 Accidental death insurance is particularly suited for you if:

• You want or need to help supplement your traditional life insurance coverage
• You want to provide extra help and financial protection to your family should you die from an accident
• You want to provide some financial protection for your family and loved ones, even if you don't qualify for other forms of life insurance.
• You want to give your family peace of mind but don't want to go through a medical exam or simplified issue medical underwriting process

References

(1) Center for Disease Control and Prevention [2022]. Motor Vehicle Safety At Work, 2022. 

(2) Mutual of Omaha [2020]. Do You Need Accidental Death Insurance? 2020.

(3) Bureau of Labor Statistics [2022]. Census of Fatal Occupational Injuries, 2019-2020. Create customized tables.