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Does Life Insurance Cover Accidental Death?

By July 9, 2020 February 26th, 2021 Advisor, Blog, Consumer
does life insurance cover accidental death

Life is an exciting journey full of freedom and adventure. Being able to experience life to the fullest means having the peace of mind that your loved ones will be financially protected no matter what. It’s hard to know what life has in store.

With life insurance, you’re prepared should the unexpected happen, and it’s important to understand the options available to you.

One of those options to consider for a life insurance policy is the potential for accidental death. Accidental death occurs when it is a result of bodily injury caused solely through external and accidental means (not due to natural causes). To insurance providers an accidental death can range from fatal motor vehicle accidents to fatal accidents in the workplace.

Why Consider Purchasing an Accidental Death Benefit (ADB)

If you’re wondering if your life insurance policy can include accidental death, the answer is yes.

If you were to have an accidental death while owning a life insurance policy depending on your plan you would be protected because this coverage is built into your policy. Term life insurance policies that cover accidental death can provide insurance coverage for 10, 20 or 25 years, or however long is specified in the policy. At the end of the term, you can decide if you’d like to renew based on your needs and current state. Permanent life insurance will also provide coverage for accidental death for the duration of your life.

When shopping around for life insurance there are various types of plans that you should consider. No medical life insurance is a simpler way to provide your loved ones with the financial protection they need. This type of life insurance doesn’t require you to complete a medical exam. If you don’t like needles, you won’t need to do any blood tests or have fluids drawn. The application process for this type of life insurance is straightforward, consisting of health and medical questions that should be easy enough to answer. Unlike traditional life insurance which has a lengthy application process and can take months to issue your policy, with no medical life insurance your policy can be issued in a few days.

Some life insurance providers will give you the option of purchasing an additional Accidental Death Benefit (ADB) rider to your base plan. A rider is a legal document that is added to another document with further stipulations.

Should death occur as a result of an accident, the rider is paid out on top of the standard benefit payable from a standard life insurance policy. Some plans will pay out ADB even when an accidental death occurs during a deferral period. However, it’s important to know that depending on your insurance provider, this may have more exclusions. Check with your life insurance provider to know what you are covered for, and what’s excluded. This means if you die due to causes specified on the insurance providers exclusions list, then they may not payout the additional benefit.

Who Should Consider Purchasing a Life Insurance Policy/Accidental Death Benefit?

Almost anyone can benefit when covered with a life insurance policy in the event of accidental death. However, some may have more of a reason to consider adding an ADB to their standard term life insurance policy. If the cause of death is accidental (as specified in your policy), depending on your life insurance provider an ADB can for example, pay up to five times the basic life insurance coverage amount. Here are a few groups of people that may be at an increased risk of accidental death and should consider getting the appropriate coverage:

Those under the age of 40

Individuals under the age of 40 have an increased risk of having an accidental death. Research shows that from when a person is born to the age of 34, accidents are the leading cause of death.1 With this in mind, if you’re a millennial and need additional financial coverage to protect the ones you love in the event that something should happen to you – you can easily add an Accidental Death Benefit to your policy.

Hazardous workplace

Not all workplaces are created equal, and for some people going to work every day means putting their lives at risk. A few examples of high-risk jobs include being a roofer, garbage collector, veterinarian, firefighter, and more. If you work in a hazardous workplace environment, you may want to consider purchasing a no medical life insurance policy and adding an ADB.  Some insurance providers may deem your job too high risk to insure, but others will offer you protection, despite your hazardous job. However, know that the premiums will likely be higher as a result of your employment.

Frequent driver

If you spend a lot of time driving for work or for pleasure, you’re at an increased risk of an accident and early death.  Driving can be dangerous and even if you are a very safe and careful driver, there are others on the road that aren’t so safe, and that’s where there is risk of having an accident. If you drive often and far distances for work purposes, then purchasing a life insurance policy may provide your loved ones with the coverage they need.

Extreme sports

If you’re a thrill seeker who enjoys participating in extreme sports, then a life insurance policy with an ADB may be the right choice for you. Have peace of mind that even when you’re enjoying your favourite activities such as scuba diving, mountain climbing, or skydiving, if the worst were to happen your loved ones would be protected. If you’re planning any of these high-risk adventures while travelling, keep in mind that travel insurance usually won’t cover you.

Ensure that you have a life insurance policy in place. If you want additional coverage, consider adding an ADB rider to your life insurance policy.

Reasons to Add an Accidental Death Benefit to Your Life Insurance Plan

Protect your loved ones financially

Your sudden and unexpected accidental death may put your loved ones in a tough financial situation. Plan for the future and consider how you can best prepare.

If you leave behind an outstanding mortgage, personal debt, outstanding expenses, and your family is now responsible for funeral costs and perhaps your childrens’ post-secondary education, a life insurance policy can help support your family financially through a difficult time. If you choose to add an ADB rider on top of your life Insurance, your loved ones can benefit from additional coverage for these expenses.

It may provide you with peace of mind to know that in the case of accidental death, your loved ones will experience less stress and hardship during an already challenging time.

Affordability and ease of application

No medical life insurance is an affordable option that doesn’t require any medical tests or doctors’ visits. Simply answer some health and medical questions, and your policy can be issued in a few days.  The ADB rider can be an affordable option as an add-on and in some cases can pay up to five times the amount of the life insurance death benefit.

Situations Where an Accidental Death Benefit Will Not Payout

If you add an ADB rider to your life insurance policy, keep in mind that this is different than the coverage your life insurance policy provides you in the event of accidental death. Depending on the insurance provider, you may not have coverage due to the following (not an exhaustive list):

  • Driving under the influence
  • Drug overdose
  • Suicide
  • Surgery
  • War
  • Attempting to Commit a Criminal Offense
  • Infection
  • Travel on any aircraft (outside of a fare-paying passenger on a fully licensed passenger carrying aircraft on a regularly scheduled flight)

Is life insurance and an accidental death benefit right for you?

If an accidental death were to happen to you, No Medical Simplified Life Insurance can give you the coverage you may need. However, adding an Accidental Death Benefit rider can provide you with even more confidence that your family will be financially secure.

Find out what you can be covered for. Speak with your advisor or  contact Canada Protection Plan for a no-obligation life insurance quote.
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Canada Protection Plan is one of Canada’s leading providers of No Medical and Simplified Issue Life Insurance. Our mission is to provide reliable protection and compassionate service from coast to coast with easy-to-purchase life insurance, critical illness insurance and related products. Our expanding product choices will help you get the coverage and peace of mind you need for a better financial future. Canada Protection Plan products are available through over 25,000 independent insurance advisors across Canada.
To learn more about Canada Protection Plan and our line of comprehensive No Medical and Simplified Issue life insurance solutions, call Broker Services at 1-877-796-9090 and we will be happy to assist you or put you in contact with Sales support in your region.

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