What is accidental death insurance and what does it cover?

Apr 14, 2019 | Same topic: Survive driving in the Philippines
How much do you know about the accidental death insurance?

Whether you’re a car owner or a commuter, we’re sure you’ve heard of the term “life insurance”. Experts say we all need life insurance whether we’re working or unemployed - regardless of how old you are and what you do in life. Life insurance makes sure that you are financially prepared in case the faithful event happens that you would have to leave your loved ones.

Life insurance would make sure that they wouldn’t have to bear the burden of financial trouble along with the bereavement process – but what exactly is accidental insurance and what can it do for you? And how is it different from life insurance? Read on this article from Philkotse.com to find out more.

1. What is accidental death insurance?

Accidental death insurance is also known as AD&D or accidental death insurance and dismemberment. This is the type of policy that the client purchases to have financial support if he dies due to an accident.

It usually goes hand-in-hand with the dismemberment assurance that also works to favor the client even if he does not die in the accident. This falls under the category of policies that are offered by health or life insurance companies.

Although this is usually an option added to the original policy bought, an AD&D can actually be bought on its own, provided that the company allows it. It’s usually cheaper than and more simple than complicated life insurances that come with other benefits but also have more conditions.

An accidental death insuranc

Accidental death insurance is a type of policy that the client purchases to have financial support if he dies due to an accident

There are companies however, that demands that you purchase a particular life insurance package before you can buy the AD&D as an add-on. Different insurance companies may give you different insurance quotes, but it’s best to stick to something you know you will need and that you’ll end up using it someday.

The common people who patronize the accidental death insurance are those who travel often – drivers, vehicle owners, motorists and the likes. However, its terms and conditions may vary from one insurer to another so you would need to speak with a representative from the insurers that you consider.

One insurer may give you more favorable coverage than the last.

2. The difference of Accidental Death Insurance from Dismemberment

The accidental death insurance guarantees that the beneficiaries as indicated in the contract will receive a particular amount of money subject to the policy. The number of beneficiaries can vary depending on the policy bought and as indicated in the signed documents. There are usually one or two beneficiaries.

However, one can opt to buy a policy that allows more beneficiaries provided that he pays the price tag. Once you upgrade your number of beneficiaries, they should all be able to benefit from your passing. The company would then need your relatives to process paperwork before they could grant the claims once the client has died.

car accident

The accidental death insurance guarantees that the beneficiaries will receive a particular amount of money subject to the policy

Dismemberment is where one is granted a partial amount of cash if the client has been in an accident and suffered physical damage. The unhappy event may not lead to death but if the client has lost a limb or broke a bone for example, he could be subject for a dismemberment grant.

It is very rare for an insurance company to pay the client 100% of the insurance policy he bought if he only suffered dismemberment.

One would also need to submit medical records to prove their claims. For example, if a client has reportedly broken a rib in a motorcycle accident, the company would need an X-ray and other legal health documents as proof to file.

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Dismemberment is where one is granted a partial amount of cash if the client has been in an accident and suffered physical damage

3. What does AD&D cover?

There are different types of coverage under the AD&D quote all over the world. Here are the different AD&D quotes currently available in the Philippines.

3.1. Travel Insurance

This provides clients with insurance whenever they travel. This type of coverage can be taken advantage of whether you bought the quote independently or it was provided by an employer.

It usually covers sickness, accidents, death, medical reimbursement, dismemberment, hospital expenses. Some insurers also provide insurance for lost baggage, aircraft skyjacking and even loss of baggage.

Travel insurance

Travel insurance provides clients with insurance whenever they travel

3.2. Personal Accident Insurance

This quote provides the client with the assurance that he is insured with year-round protection wherever he may be in the world. It guarantees dismemberment, accidental death benefits, and permanent disablement.

There are also insurance companies that can guarantee you protection against loss of income and medical expenses during the days you were hospitalized. Assault and murder can also be covered.

3.3. Family Accident Insurance

This insurance plan covers one’s immediate family members as well. Immediate family members are stated below:

  • If single – parents that are not over 60 years old.
  • If single – unmarried siblings aged 1 to 29 years old.
  • If married – a spouse who is not over 60 years old.
  • If married – children who are 1-19 years old

Family insurance\

Family accident insurance plan covers one’s immediate family members as well

3.4. V.I.P Personal Accident Insurance

This protects the client from the loss that has resulted from an accident. This is similar to the Personal Accident Insurance except that it includes a private plane trip to the nearest insurer-accredited health facility.

3.5. Auto Protective Insurance

This insurance policy protects the client and whoever his passengers may be at the time of the accident. This will be effective if there are bodily injuries and loss of appendages or limbs experienced by the client or the passengers.

This quote’s coverage is also similar to Personal Accident insurance, the only difference is that it’s only effective if in a car accident.

>>> View more: A detailed explanation of car insurance and how it works

3.6. Travel Insurance Policy

This policy ensures that the client is protected against all possible loss that he has sustained from the accident. It also covers possible losses caused directly or indirectly by body injuries as a result of the accident. This also resembles the Personal Accident Insurance except for the following reasons:

  • The coverage is for a number of days only (possibly the number of days of the trip).
  • It also has a maximum number of days that the coverage is effective. Most insurers that carry this plan provide 180 days as the maximum.

>>> Get more helpful tips and advice for all car owners here

Source: Hanna Miel Sanchez