iQuanti: When purchasing a life insurance policy, the hope is that the policy can accommodate your family and loved ones should the worst happen. But some situations, including accidents, can become more costly for your family to manage than an old-age death. This is why life insurance companies offer riders in the event of accidental death.
Accidental death benefit riders provide extra money to a life insurance payout in case an unexpected death leaves your family members strapped for finances. There are a number of life insurance plans that provide accidental death benefit rider, each offering different advantages and disadvantages. Read on to learn more about the types of accidental death life insurance plans to decide which option is best for your situation.
Term life insurance plan
Term life insurance is a common coverage option for life insurance customers. This implies a predefined period of time for the policy to be in effect (usually between 15 and 30 years). After this time, the policy ends.
It is possible and easy to add accidental death benefits to term life insurance plans. Simply request that an accidental death benefit rider be added to your policy when discussing your coverage with your life insurance company.
Whole life insurance plan
Whole life insurance is a permanent life insurance policy that will last your lifetime. Unlike term life insurance, this type of plan does not expire after a certain period.
While there are other caveats to a whole life insurance policy, such as the ability to accumulate cash value, you can also add an accidental death benefit rider to your coverage. To obtain an accidental death endorsement, simply request this benefit from your insurance company.
Complementary group life insurance plan
Group supplemental life insurance plans provide coverage for an extended group of people, as opposed to just one person. Employers often offer these types of plans to their employees. Supplemental group life insurance plans offer an accidental death rider as part of a group life insurance policy.
These plans are fantastic, affordable options for employees who want basic life insurance options, not to mention that an accidental death benefit rider is often paid for through the policy.
Voluntary life insurance scheme
A voluntary life insurance plan provides an optional option to deduct additional amounts from your payroll in the event of accidental death.
If your company offers a voluntary life insurance plan, you will need to check whether you will have to pay extra for an accidental death benefit. While it may seem inconvenient for policyholders who pay extra, these types of plans can give you more flexibility in choosing what you do and what you don’t pay.
Travel Accident Insurance Plan
A travel accident death benefit takes into account possible situations where an employee could die while traveling on company business. Unlike voluntary life insurance, employers will generally pay the additional money required for travel accident insurance.
Although there are not as many situations applicable to travel accident insurance, this type of endorsement can provide additional security for employees who travel frequently and prefer additional protection.
Choose the right insurance for you
An accidental death benefit rider can provide much-needed financial assistance to a family struggling with the weight of a difficult and unexpected loss. Those interested in purchasing life insurance with this added benefit should consult a financial advisor to determine which plan is best for their financial situation and needs. Choose your plan and accidental death benefit wisely, and you’ll have peace of mind knowing you’ve taken care of your loved ones.