Affordable Life Insurance Protection for Your Family

What is the Difference in Accidental and Term Insurance?

If you are considering the purchase of a life insurance policy you may be asking yourself what the differences are between an accidental death insurance policy and a term life insurance policy.

It’s important to understand your own personal life insurance needs and what type of insurance policy will provide you with the protection you and your family need.


Review of Accidental Insurance vs. Term Insurance


Accidental Life Insurance Explained


Accidental Death Insurance, also known as accidental life insurance, pays out a death benefit to the beneficiary of the insurance policy upon the death of the insured person, subject to the terms, conditions and exclusions stated in the policy. 

Usually, an accidental death policy will cover death resulting from an accident if the death occurs within 6 months of the accident date. However, there may be exclusions listed in the policy which specifically exclude death resulting from certain types of accidents.

Accidental life insurance does not cover death resulting from natural causes, cancer, health problems, or anything other than an accident.


Who Buys Accidental Insurance?

Usually, people who have high risk occupations or take part in high risk hobbies may be interested in buying an accidental life insurance policy.

Or, someone who wants to add more death protection (resulting from an accident) if they already own a traditional life insurance plan.


High Risk Occupations:

  • Timber Cutters
  • Fishing Boat Crew Members
  • Aircraft Pilots
  • Miners
  • Highway Construction Workers
  • Farm Workers
  • Roofers


High Risk Hobbies:

  • Skydiving
  • Aviation
  • Scuba Diving
  • Water Sports
  • Mountain Climbing
  • Boat Racing
  • Surfing
  • Auto Racing


Term Life Insurance Explained


Term Insurance is a type of life insurance plan that provides insurance coverage for a specified period of time.

The policy "Term" is the duration of time your life insurance coverage will last.

Usually, insurers offer term life coverage for a duration of either 10, 15, 20, 25 or 30 years.

Term life pays out a death benefit to the beneficiary of the insured’s policy upon the death of the insured person, if the insured dies from natural causes, health issues or an accident. 

However, there are several specific exclusions common to term life policies, including death resulting from suicide within 2 years (one year in some states) of the start of the life insurance policy.


Example: 10 Year $250,000 Term Policy with Annual Premium of $250


In this example, the insured person is insured for a period of 10 years and the owner of the policy pays an annual premium of $250.

If the insured person dies within the 10-year term, the death benefit of $250,000 is paid out to the person listed as beneficiary in the life insurance policy. 

However, if the insured person is still alive after ten years, the insurance coverage expires and there is no payout of any death benefits from the policy.


Who Buys Term Insurance?

There are many situations which may give rise to your need for temporary (term) life insurance protection, including the following:

  • Getting Married
  • Married Couples
  • Expecting a Baby
  • New Home Owner
  • Adopting a Child
  • Someone with a Mortgage Loan
  • Someone with a Car Loan
  • Someone with a College Loan
  • People with One or More Children
  • Divorced Parents
  • Single Parents
  • Widowers
  • If You Have Someone That Relies on You for Financial Support


Why Purchase a Term Life Insurance Policy? 

  • On a Budget and Need the Maximum Amount of Life Insurance for Your Money
  • Need 30 Years or Less of Life Insurance Protection
  • Own a Home and Want to Protect the Mortgage
  • Married and Want to Protect Your Spouse
  • Starting a Family and Want to Protect Your Family’s Future
  • Have Children and Want to Provide for Your Child’s College Education


Review of Accidental Life vs. Term Insurance

If you need life insurance protection you may want to consider accidental death insurance if you take part in high risk hobbies or have a high-risk job. It offers the maximum amount of death benefit protection for the lowest price.

If you need temporary life insurance for 30 years or less, offering the maximum amount of coverage for your budget, and need protection for accidental death, or death resulting from illness or natural causes, then term life is the best option.


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Can Term Life Insurance Provide Coverage for Accidental Death?

What is the Difference in Accidental and Term Insurance?

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