In the simplest terms possible, accidental death cover is a form of insurance that provides cash in the event of your death from an accident. It can be regarded as a supplemental life insurance product, but not as an acceptable substitute for life insurance.

So, if you have accidental death cover and you die as a result of an unforeseen incident, then those people whom you have named on your policy as beneficiaries will receive a lump sum of money.

On the surface, this sounds like a really good way to plan ahead. After all, we don’t know what could happen in the future. What we do know is that death by unforeseen events does happen.

If you’re interested in getting accidental death cover and need a bit more information, then take a look at this breakdown of what’s included and the pros and cons.

The highlights

Essentially, accidental death cover is an insurance policy that will pay cash to your loved ones if you pass away either as a result of exceptional circumstances, such as exposure to the elements, traffic accidents, homicide, falls, drowning, and accidents involving heavy equipment.

Generally speaking, there are no medical exams required in order to get cover, and depending on your service provider, you should be covered for your whole life. That said, you should have the option to increase, decrease or cancel your cover any time.

That said, this is something that you would have to confirm with your provider.

The pros of accidental death cover

We can’t control our circumstances, but we can control how we prepare for all of life’s eventualities. One of the things that we can do is to plan ahead and explore a policy like accidental death cover.

Here are the key benefits of this type of cover:

• The premiums are much more affordable than something more comprehensive, like term life insurance.
• It’s ideal for younger individuals, where the likelihood of a death by unnatural causes is higher than natural causes.
• There is more flexibility because you take this cover out as a standalone policy or as an addition to your life insurance policy.
• If you are medically uninsurable then this product may be right for you.
• This policy can be an ideal solution if you have debt or dependants and can’t afford or don’t qualify for life insurance.
• The monetary benefits can make your family’s financial circumstances less stressful.

The disadvantages of this kind of cover

It makes sense to find out all the information that you can before committing to another expense – especially during these tough economic times. That’s why we’ve done our best to understand the disadvantages that could mean that accidental death cover isn’t the right product for you.

• This policy covers fewer risks, for example, if you die as a result of a physical illness, then you won’t be covered.
• Generally, accidental death cover excludes cover for death due to illness.

You can’t always predict what will happen, but you can plan for it

Life is, as they say, fairly unpredictable. There’s no way of knowing what will happen to you, but you can determine what you leave behind for your family. A policy like accidental death cover will help your family soldier onwards when you can no longer provide for them.

The age groups most affected by non-natural causes of death in 2018 were people between the ages of 15-19 and 20-24 years, accounting for 42,5% and 49,2% respectively.