Life Insurance: Regular vs. Accident Insurance

It can get pretty confusing when you're choosing a life insurance policy. There are so many options and extras and if you don't understand which to choose, it can be very confusing to select a policy. One of the most common questions that people come up with is simply to do with the differences between regular and accident life insurance, particularly because they seem to be the same at first glance. However, there are some differences that you should know about before you choose a life insurance policy.

Regular Life Insurance
What exactly is covered by regular life insurance varies by policy, so you will want to really check this out when you are talking to the insurance company. There are two main types of policies here, permanent and term. Term insurance will only cover you for a specific time period, usually a year to five years, after which time you will need to renew your insurance. Permanent gives you life-long coverage.

Both types usually cover both death and some medical costs if you are injured or ill. Again, it's important to read the fine print on this.
You will need to choose someone to receive the payout should you die while your life insurance is active. Regular life insurance covers a variety of ways that you could pass, including sickness. However, there will be certain options that are ruled out. For example, most life insurance companies will not pay out if a death was ruled a suicide. Most regular policies will exclude certain accidental deaths, as well, which is why you will probably want to look into adding an accidental life insurance policy to your regular one.

Accidental Life Insurance
A lot of accidents happen in our lives and on occasion they can cost you a lot of money. Accident insurance usually covers things like medical costs, hospital stays and will reimburse you for lost limbs, eyesight, etc. depending on the policy. Also, if you were to die due to an accident, this type of policy would give your beneficiary a payout. Not all regular insurance does this for accidents.

In cases where an accident leads to death at a later date, such as a car accident where the victim is in a coma for several weeks or months before dying, the policy will have a specific time limit. Many give you 3 months, so if the victim dies four months after the accident, due to related injuries, no payout will be given.

Why Choose Accident Insurance
For most people, adding accident insurance to their regular policy just makes sense. It means you are covered no matter what happens and since a large number of deaths and major injuries are caused by accident and not necessarily disease, it makes sense to insure yourself. Having that safety net can be invaluable should something happen and you lose your sight due to an accident, something that regular life insurance wouldn't touch, but accident insurance would offer a payout for.

Insurance is a big deal. You want to be sure you get the right coverage and that you aren't going to regret not opting for the extras later on. Do your research, read the contracts completely before signing and talk to the insurance broker about your options. Make sure you understand everything that is covered and what is not by your specific policy. Sometimes you can customize your policy to create the best possible insurance for you personally, so talk to your agent about this possibility. Life insurance is important and needs to be taken seriously.

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