Accidental Death Insurance

While no one can predict the future, planning for the unknown could help provide you and your loved ones with a sense of security today. Chances are, tomorrow will be filled with many more milestones and joyous moments, so don't spend time worrying about the unexpected — consider preparing for the unexpected.

This insurance type can be an appealing choice for younger applicants, who are more likely to die in an accident than by illness. If you do consider accidental death insurance, it's important to understand its limitations. Remember, this coverage is not full life insurance coverage and will only pay your beneficiaries after an accident. If you buy an accidental death insurance policy, don't assume you're protected for every situation.

Accidental death insurance is designed to pay a death benefit to your beneficiaries if you die in an accident. This policy type could cover unintentional death by falling, drowning, suffocation, choking, fire or an automobile accident, as well as other scenarios that would be detailed within the policy. The death benefit could help alleviate financial worry for your loved ones when they need it most. If you were to die in a car accident on your way to work, for example, an accidental death insurance policy could help your loved ones pay for your burial and funeral costs — or any other expenses.

However, this policy type won't pay out if you die due to disease or other natural causes. It's important to keep in mind that accidental death insurance is not available in every state. Insurance companies may also adjust their rates, coverage levels and exclusions by state — and some companies have age limits for their policies.

Accidental death insurance also has some exclusions. Typically, it will not cover deaths from dangerous hobbies like car racing, skydiving or bungee jumping. These policies also may not cover death from suicide, driving under the influence or a drug overdose. Be sure to check for exclusions before signing up for a policy.