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Accidental Death and Dismemberment Coverage

Updated on September 13, 2012

Life insurance is an important financial investment you make for your family. It gives you a way to provide for your family in the event of your untimely passing. The death benefits that your family is left with helps them pay off debt, afford college, and reach a savings goal for retirement because it replaces your income, which enables them to enjoy the same lifestyle they had while you were living.

You might think another death benefit in addition to the accidental death benefit is pointless, but actually it isn’t. An accidental death benefit can come in handy for your loved ones in a few ways.

Extra Benefit after Increased Debt

Over the span of your life, you’ll likely acquire debt. Once you’ve purchased the car, house, appliances, and expensive vacation, you may take out a life insurance policy with a death benefit suitable for paying off these existing debts. What will you do if you create other debts over the subsequent years? What will you do if it takes you longer to pay off the debts you had originally? To keep down this risk, you should increase your death benefit as your debt increases. Otherwise, they won’t be able to pay off the debt you leave behind with an insufficient death benefit. It reduces the usefulness of your legacy altogether and it limits the power of the funds received.

Whenever you add an accidental death benefit to your insurance policy, you’re ensuring that your family will receive additional money when your death happens because of an accident. It’ll supplement your present life insurance policy and pick up the slack from additional debt you’ve acquired, but isn’t covered by your existing death benefit.

Other Liabilities and Injuries

You can never tell what will cause an accidental death, which is why it’s an accident. Additionally, you can’t predict if others will be injured in the accident or how it will affect your vehicle, home, or other property. Accidental death benefit supplements the money your survivors will get, after an accidental death. It provides them with more funds to afford any additional things that might be the result of the accident.

Accidental death insurance benefits will allow your beneficiaries to be able to pay for liabilities incurred in the accident and/or property damage. It can also provide funds for medical treatment of injured family members.

Dismemberment Benefits

Sometimes, accidental death policies include benefits for dismemberment. This benefit allows individuals who experience loss of hearing, sight, or limbs access to a portion of their dismemberment death benefit. This helps the individual adjust to life after they experience dismemberment. It also allows for modifications and accommodations to be made to their home or vehicle, which enables them to function normally despite their situation.

For more information on life insurance policies, contact HomeStar Insurance Services, Raymond Longoria Insurance, or Prime Insurance Agency.


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