Planning to Have an Accident?

Of course not. No one plans an accident and while it is not plausible to presume one can escape an accident, it is entirely possible to prepare for it. Most people don’t understand the importance of having accident insurance. While auto insurance helps in the event of an accident, it may not cover all the resulting problems—so accident insurance may provide a viable, low cost option to help protect one’s financial needs and those of one’s family.

Traffic Accident












The two most common types of accident insurance are Accidental Death (AD) or Accidental Death and Dismemberment (AD&D) insurance which provide a benefit if one dies as a result of a covered accident. Typically AD or AD&D are guaranteed to be issued meaning acceptance is not based on underwriting requirements. AD&D also includes dismemberment benefits when an accident results in the loss of limbs, eyesight or hearing without resulting in death.

Accident insurance coverage typically costs less than either term or whole life insurance because it pays on accidents only, not illness. This means that Accident Insurance shouldn’t be considered a replacement for term life coverage but it can be a low cost way to supplement other coverage in the case of a covered accident. In some cases, accident insurance is offered as an additional benefit to enhance a Term Life policy or it is available on a stand-alone basis.

Accident insurance is important because it can help close the coverage gaps left by other insurance coverage programs such as life, health, workers’ compensation and disability since it can cover expenses other plans may not. Accident insurance can also provide some “living benefits” or payments that the insured can receive for certain injuries while alive.

Here is what to expect from most AD&D plans:

  • High benefit amounts—some policies offer up to $500,000 in benefits.
  • Payment in addition to other coverage, including life insurance.
  • Special education benefits to help pay for children’s education.
  • Broad coverage for an accident that happens while at work, home, or traveling.

One should compare coverage on various plans to determine exactly what types of accidents are covered.  An employer may provide accident insurance—but typically accident protection is needed ‘off-the-job’ where most fatal accidents occur. In fact, nearly 9 out of 10 deaths and about two thirds of disabling injuries suffered by American workers occur off-the-job based on 2010 data from Injury Facts.

Learn more about the Group Accidental Death & Dismemberment protection offered by the AIA Trust.

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