What is an Accidental Death Benefit?

An accidental death benefit is part of many different life insurance policies. Here are the basics of the accidental death benefit and how it works.

Accidental Death Benefit

The accidental death benefit is a part of an insurance policy that pays if someone is killed by an accident. This type of death benefit will not be paid if they die of natural causes or some type of medical problem. It is strictly going to pay only if someone perishes in a fatal accident.


This type of benefit can be provided in a number of different ways. It can be a part of an existing life insurance policy that covers other causes of death as well. Another option is that you can purchase an accidental death life insurance policy that only covers this particular benefit.


If you choose to purchase a life insurance policy that only has accidental death coverage, it is going to have cheaper premiums associated with it. Since the policy only covers one particular set of circumstances, the odds of dying in this manner are decreased. This means that the insurance company can afford to charge cheaper premiums than they can with a traditional full life insurance policy.

Death Benefit

The death benefit is the amount of money that will be paid to a beneficiary upon the death of the policyholder. For example, if a policyholder had a $1 million life insurance policy, the death benefit of the policy would be $1 million. This is the amount of money that will be paid to that policyholder's beneficiary when he or she dies. The death benefit can be permanent with whole life insurance, or it could last for a certain number of years under a term life insurance policy. The death benefit will be clearly defined in the documentation of a life insurance policy.

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