Types of Accidental Death Benefit Insurance Plans

iQuanti: When buying a life insurance policy, the hope is that the policy can accommodate your family and loved ones should the worst ever happen. But some situations, particularly accidents, can become more costly for your family to manage than passing away from old age. This is why life insurance companies provide accidental death benefit riders.

Accidental death benefit riders provide an additional sum to a life insurance payout in case an unexpected passing leaves your family members strapped for finances. There are a number of life insurance plans that offer an accidental death benefit rider, with each offering different pros and cons. Read on to learn more about the types of accidental death benefit life insurance plans to decide what option best suits your situation. 

Term life insurance plan

Term life insurance is a common coverage option for life insurance customers. It involves a pre-set period of time for the policy to be in effect (usually between 15 and 30 years). After this time is up, the policy ends. 

It's 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 reviewing your coverage with your life insurance company. 

Whole life insurance plan

Whole life insurance is a permanent life insurance policy that will last throughout 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 accrue cash value, you can also add an accidental death benefit rider to your coverage. All it may take to get an accidental death rider is to request this benefit from your insurance company.

Group life supplemental insurance plan 

Group life supplemental insurance plans offer coverage to an extended group of people, as opposed to a single individual. Employers often offer these types of plans to their employees. Group life supplemental plans provide an accidental death benefit rider as part of a group life insurance contract.

These plans are fantastic and 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 plan

A voluntary life insurance plan offers an elective option to deduct additional money from your payroll for an accidental death benefit.  

If your company offers a voluntary life insurance plan, you'll want to look into whether you'll need to pay extra for an accidental death benefit. While this may seem inconvenient to policyholders who pay extra, these types of plans can give you more flexibility to choose what you do and don't pay for. 

Travel accident insurance plan

A travel accident death benefit accommodates possible situations where an employee might pass away while traveling on behalf of the business. Unlike voluntary life insurance, employers will typically pay the extra money require for travel accident insurance. 

While there might not be as many applicable situations for travel accident insurance, this sort of rider can provide added security for employees who travel frequently and prefer extra protection. 

Pick the right insurance for you 

An accidental death benefit rider can provide much-needed financial help to a family struggling under the weight of a difficult and unexpected loss. Those interested in getting life insurance with this extra benefit should consult with a financial advisor to figure out what 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.