Accidental Death Insurance: How Much Does it Cost?

If your pocket can’t shoulder the cost to get life insurance, accidental death insurance is a low-cost alternative. It is also a way good for people who are worried about being rejected/declined for traditional life insurance. Take note that, there are a handful of life insurance policies that will approve anyone.

Accidental death insurance policies are also a cost-effective means for extra financial protection along with a traditional life insurance policy.

Related article: How Much is the Cost of Life Insurance?


What is Accidental Death Insurance?

Accidental death insurance is also known as accidental death and dismemberment insurance (AD&D). This AD&D is a type of insurance that pays out a benefit if you are injured or killed in some accidents.

Accidental death, as defined in accidental death insurance policies, is any type of death strictly because of an accident. Typically, it excludes such things as acts of war and death caused by illegal activities or any hazardous hobbies. Any hazardous hobbies are exempted simply because the insured is regularly engaged in it. In the case of a lethal accident, death usually must happen within a period specified in the AD&D policy.


What is Accidental Death Benefits Plan?

The accidental death benefit is a payment due to the beneficiary of an accidental death insurance policy, which is often a clause or rider connected to a life insurance policy. The accidental death benefit is usually an amount paid in addition to the standard benefit payable if the insured died of natural causes.

Depending on the issuer of the policy, the accidental death benefit may extend up to a year after the initial accident occurred, so long as the accident led to the insured’s death.


How Accidental Death Insurance Work?

As a hypothetical example, let’s assume that Michael has a $500,000 life insurance policy with a $1 million AD&D rider. If Michael dies from a heart attack (a natural cause), his beneficiary will get $500,000. Meanwhile, if he dies in a car accident, his beneficiary will receive a $500,000 life insurance benefit. In addition, the beneficiary will also get the $1 million AD&D insurance. All in all the beneficiary will get a total payout of $1.5 million.


How to Get Covered?

Mostly, getting accidental death and dismemberment coverage is a simple and basic process, and usually, your coverage begins immediately. Additionally, there is usually no medical exam and you only need to complete a short questionnaire to finish your application. If you got approved (most people are) then the coverage is bound by your payment.

To qualify for the applications, age is the primary factor that applicants should consider. The eligibility basically begins at the age of 18 and ends at the age of 70 for new applicants. Whereas, the coverage usually ends between ages 75 to 80. Health and occupation factors are typically not considered to get covered.

For example, a rock climbing instructor may be covered for accidental death in an auto accident but a rock-climbing accident may not be covered.


Four Common Accidental Death Insurance Plans

  • Group Life Supplement. This type of arrangement includes the accidental death benefit plan as part of a group life insurance contract. Typically, the benefit amount is also the same as that of group life insurance benefit.
  • Voluntary. When it comes to this type, premiums are usually paid in a payroll deduction. The AD&D benefit plan is offered to members of a group but as a separate, and usually an elective benefit. 
  • Travel Accident. For this arrangement, the AD&D death benefit plan is provided through an employee benefit plan. This provides supplemental accident protection to workers while they are travelling on company business. Basically, the employer pays the entire premium plan.
  • Dependents. This type of arrangement includes other dependents/beneficiaries on group accidental death benefit plans.


How Much Does Accidental Death Insurance Cost?

We are sure that you will be surprised at how inexpensive AD&D is. Due to its low cost, it’s the common insurance that employers offer to employees as an alternative to life insurance. However, AD&D coverage isn’t nearly better than life insurance and somehow has limited benefits.

Generally, coverage amounts are low and come with many restrictions. Unlike life insurance, the cost of accidental death and dismemberment depends on how much you buy, not your health.

Most families chose to use AD&D to supplement their life insurance policies. Supplementing life insurance with AD&D may cost much less than additional life insurance.


Final Thoughts

Are you curious about how much accidental death insurance will exactly cost you in premiums? You may contact Life Insurance Direct today to get an accidental death insurance plan quote. Call us at 1-844-922-1392 to know more about the kind of coverage and benefits you can get out of your policy. You can also send us an email at 

An insurance broker will be able to provide you with personalized service and to put together a quote that considers all of your individual needs.

Related article: How Much is the Average Whole Life Insurance Cost?

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