Accidental Death or Accidental Insurance
Accidental insurance is a type of limited life insurance designed to cover the insured if he passed away due to accident only. The accidents include road accident or injury caused by unexpected incidents, but this policy does not cover any death resulted from illnesses, health problems or suicide.
Accidental life insurance normally has a lower premium than other types of life insurance; its benefits are not only accidental death, but also body injuries such as loss of eyesight, hearing and loss of fingers or toes, and bigger percentage compensation for loss of limbs.
This policy can be purchased as a separate or additional or a rider to a standard life insurance, if purchased as a rider the death benefit will be double if the insured dies due to an accident.
The premium of accidental life insurance is renewable annually if purchased as a separate policy, the premium has no cash value, and that is to say the insured will not get back any refund if the 1 year coverage is over, even if the insured did not suffer any accident, it is like buying a car insurance, nothing happened nothing gained. When the policy expired the insured can either renew the policy or cancel it, or he can renew it any time he wishes, because he has the option to renew it whenever he wishes, but during this expiration period, he has no coverage.
Accidental insurance compensates the insured partially only if he suffers minor injury, such as loss of fingers or toes, the compensation will be stated in the policy. Anyone who purchases this policy is advised to read carefully about the compensation, because minor injuries are payable by percentage only and there are some exclusions as well.
Under some circumstances, the insurance companies reserve the right to compensate or not to compensate the insured, for example if the injury of the insured is caused by alcoholic intoxication.
