MENU
EDU Articles

Learn about investing, trading, retirement, banking, personal finance and more.

Ad is loading...
Help CenterFree ProductsPremium Products
IntroductionMarket AbbreviationsStock Market StatisticsThinking about Your Financial FutureSearch for AdvisorsFinancial CalculatorsFinancial MediaFederal Agencies and Programs
Investment PortfoliosModern Portfolio TheoriesInvestment StrategyPractical Portfolio Management InfoDiversificationRatingsActivities AbroadTrading Markets
Investment Terminology and InstrumentsBasicsInvestment TerminologyTradingBondsMutual FundsExchange Traded Funds (ETF)StocksAnnuities
Technical Analysis and TradingAnalysis BasicsTechnical IndicatorsTrading ModelsPatternsTrading OptionsTrading ForexTrading CommoditiesSpeculative Investments
Cryptocurrencies and BlockchainBlockchainBitcoinEthereumLitecoinRippleTaxes and Regulation
RetirementSocial Security BenefitsLong-Term Care InsuranceGeneral Retirement InfoHealth InsuranceMedicare and MedicaidLife InsuranceWills and Trusts
Retirement Accounts401(k) and 403(b) PlansIndividual Retirement Accounts (IRA)SEP and SIMPLE IRAsKeogh PlansMoney Purchase/Profit Sharing PlansSelf-Employed 401(k)s and 457sPension Plan RulesCash-Balance PlansThrift Savings Plans and 529 Plans and ESA
Personal FinancePersonal BankingPersonal DebtHome RelatedTax FormsSmall BusinessIncomeInvestmentsIRS Rules and PublicationsPersonal LifeMortgage
Corporate BasicsBasicsCorporate StructureCorporate FundamentalsCorporate DebtRisksEconomicsCorporate AccountingDividendsEarnings

What is an Accidental Death Benefit?

Accidental Death Benefits are paid only if the cause of death is deemed to be an accident.

Sometimes a regular life insurance or health insurance contract will offer an Accidental Death rider. The rider is appended to the contract for a relatively inexpensive additional premium and will pay a specified death benefit if the insured’s cause of death results from an accident.

There are several exclusions to the definition of accident, and usually these are things like dangerous activities (sky diving, cave diving), acts of violence and war, and accidents resulting from driving under the influence or other examples where the insured has willfully put themselves in danger, or committed a crime, will usually not be covered.

Due to the amount of exclusions and the narrow chances of these policies paying out, a regular term life policy is sometimes a better deal for the insured. Some people still like the idea of getting twice as much coverage in the event of an unforeseen accident.

When added as riders on a life policy, these are sometimes called double-indemnity clauses.

In fact, actual accidents are more rarely the cause of premature death than things like illness and disease.

What is Accidental Death and Dismemberment Insurance?
Is Life Insurance a Good Investment?

Ad is loading...