What is Accident Insurance?

Accident Insurance is a type of coverage that pays benefits in the event of an accidental death. These benefits are paid in addition to any life insurance, but only up to a set amount total, regardless of any other insurance held by the same insurer. This is known as double indemnity coverage and is often available even when accidental death insurance is merely an add-on to a regular life insurance plan. Some of the accidents covered by this type of insurance include traffic accidents, exposure, homicide, falls, heavy equipment accidents, and drowning.However, every insurer maintains a list of events and circumstances that void the insured’s entitlement to their accidental death benefit. Death by illness, suicide, non-commercial radiation, war injury, and natural causes are generally not covered by AD&D. Similarly, death while under the influence of any non-prescribed drugs or alcohol is most likely exempt from coverage. Overdose with toxic or poisonous substances and injury of an athlete during a professional sporting event may also void the right to claim.Some insurance carriers may tailor their clients’ coverage to include some of the above risks, but every such extension will be accompanied by increased premiums. Due to these restrictions, the process of claiming the benefit may be relatively lengthy; the deceased client may have to undergo an autopsy and the accident may have to be officially investigated before a claim is approved by the insurer.