Everyone has gotten something in mail saying $3 a month for $100,000 worth of coverage. It was probable a quote for Accidental Death Insurance. While this policy is sold sometimes in concert with a life insurance policy, it is often offered by itself.

Accidental Death Insurance is coverage that pays your beneficiary if you die as a result of an accident. However the accident must be the direct cause of your death. There can be no intervening causes, such as an heart attack before you hit a tree, or a stroke in the middle of diving to your death. Sorry for the graphic nature, but it is important to the nature of you being able to file a claim.

People should avoid using Accidental Death Insurance as a substitute for life insurance. Both products are distinctly different and do not pay claims in the same manner. Life Insurance pays if you die, unless there is fraud involved in some instances. Accidental Death Insurance rarely ever pays off.

Accidental Death Insurance pays when you die as a result of an accident. Sometimes these policies are sold on a group basis, for instance, coverage on passengers of a travel flight. It is important to realize this policy should not be used as a replacement for life coverage. Evaluate your need for Accidental Death coverage before purchasing this policy.

Disclaimer: Always consult a financial profession to determine what coverage is right for you.

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