Trying to decide between term life versus accidental death benefit plans? Both offer coverage that can help protect your family, but with some important differences. Here’s what to consider to make sure you’re covered when it matters.

What’s the difference between accidental death and term life insurance?

The basic idea behind life insurance is to create a financial cushion for your dependents after you’re gone. If you die with an active life insurance policy, your loved ones will receive a cash payout for the benefit amount you choose, which they can use however they wish. When it comes to term life vs. accidental death benefit policies, there are some important differences to keep in mind.

Term life insurance policies keep you covered for a specific period of time. With Fidelity Life, you can buy policies that last from 10 to 30 years. These plans pay a benefit for any covered cause of death, which typically includes natural causes, most illnesses, and accidents. Check your specific policy terms to understand what’s covered and what’s not.

Accidental death benefit (ADB) policies, on the other hand, only pay out if you die because of a covered accident. Most providers have a list of ineligible incidents that causes your policy to not cover death, like accidents that happen under the influence of drugs or alcohol. Depending on your policy, ADB policies may also provide a benefit if you have a traumatic injury, like dismemberment or loss of sight.

Since just 6% of all deaths in the U.S. are accidental, it’s much more likely that you’ll die of natural causes, which wouldn’t be covered by an ADB policy. Term life might seem like the easy choice, but accidental death could be a better fit, depending on your situation. Be sure to determine your needs and weigh the pros and cons of term life insurance vs. accidental death coverage before you make a final decision.

Is term life or accidental death benefit insurance right for me?

For most people, term life is the best fit because:

• It provides more complete coverage. Accidental death benefit plans only pay out if you die in a covered accident, while term life covers you if you die from an accident, illness, or natural causes, with few exceptions.
• It’s affordable. For example, a 30-year old healthy man can get a 10-year policy with $250,000 in coverage, for as low as $13 a month.
• You can buy more coverage to meet your family’s needs. Fidelity Life’s term life policies offer up to $1 million in coverage, while accidental death benefit tops out at $500,000. If you have big financial needs, term life can offer more protection for you and your family.

Keep in mind that a term life insurance policy typically requires a medical exam during the approval process. That’s why it’s better to lock in your insurance premiums sooner rather than later. Rates go up as you get older, and you also run the risk of developing a condition that could prevent you from qualifying for term life. In some cases, Fidelity Life may be able to waive the medical exam.

While term life provides more complete insurance coverage, accidental death policies can be a good option if your health or other factors prevent you from qualifying for term life or make your rates too expensive. Accidental death might be right for you if:

• You have health issues and are concerned about qualifying for a term or permanent life insurance policy. If you’re between the ages of 20 and 59, you’re guaranteed to be approved for Fidelity Life’s accidental death benefit coverage.
• You need coverage fast – since there’s no medical exam required, you can get approved for coverage as soon as you apply.
• You want to supplement your existing life insurance coverage.

At Fidelity Life, you can purchase standalone accidental death benefit coverage, or add an accidental death benefit rider to an existing term or permanent policy.

Still have questions?

We’re here to help walk you through your options and assist you with the application process. Get in touch with a Fidelity Life agent today.

At Fidelity Life, our goal is to make life insurance simple, affordable, and understandable for everyday families. This content is intended for educational purposes only. Each post is carefully fact-checked, reviewed, and updated regularly to ensure the information is as relevant as possible.