The following insurance companies offer additional coverage for accidental death and dismemberment. Find out if accidental death coverage is a good idea for you.
The Best Accidental Death Life Insurance Companies (2024)
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It’s something you hope you’ll never have to use, but accidents do happen. Some people buy additional life insurance coverage to provide an additional payout to loved ones if the insured person dies as the result of an accident.
Often, dismemberment coverage, which provides an additional payout when an insured person loses function in a body part or bodily function, is combined with accidental death coverage.
We at the MarketWatch Guides team investigated offerings at the top life insurance companies to pick the best providers offering accidental death insurance policies. We weighed factors including customer satisfaction, ease of applying and amount of coverage for the price. The best provider for you depends on which insurance benefits you’re seeking and your price range.
Top 4 Life Insurance Companies for Accidental Death Cases
Here are the top five life insurance companies that offer excellent accidental death coverage:
- Ethos: Our top pick
- TruStage: Our pick for whole life coverage
- Bestow: Our pick for online term policies
- Fidelity Life: Our pick for accidental death coverage
Compare the Best Life Insurance Companies for Accidental Death and Dismemberment
Here’s a quick overview of each company’s strengths, AM Best rating, credit card payment acceptance, policy types offered and cost.
Insurer | Our pick for | AM Best Rating | Credit Card Accepted | Policy Types Offered | Cost* |
Fidelity Life | Accidental Death Coverage | A- | Yes | Accidental Death, Term, Whole, Guaranteed Issue | Male: $19 Female: $16 |
Mutual of Omaha | Accelerated Death Benefits | A+ | Yes | Accidental Death, Term, Whole, Universal, Indexed Universal | Male: $13 Female: $12 |
Nationwide | Bundling Insurance | A+ | Yes | Term, Whole, Universal, Indexed Universal, Variable Universal | Male: $18 Female: $17 |
State Farm | Customer Satisfaction | A++ | Yes | Term, Whole, Universal, Final Expense | Male: $19 Female: $16 |
*Sample cost is for monthly rates for a 20-year, $250,000 term life policy for a healthy, non-tobacco, 30-year-old male and female. Sample quotes for each life insurance company were provided by Quote-bot, a nationally licensed life insurance brokerage. Rates are accurate as of July 2023.
Know that your rates will be different depending on your age, lifestyle, health and other factors. To make an informed decision, it’s recommended that you request quotes from multiple companies before choosing your life insurance provider. Also, keep in mind that not all riders may be available for the life insurance plan you choose.
Types of Life Insurance Best Suited for AD&D
Life insurance policies vary to meet different needs. Some policies are better suited for accidental death and dismemberment (AD&D) coverage than others. Take into account your wellbeing, lifestyle, family tree and spousal retirement planning needs when settling on your choice.
Consider the following three options for life insurance coverage with the option to add an accidental death rider:
- Term life insurance is a good choice for young, healthy individuals who need temporary coverage at an affordable rate.
- Whole life insurance offers lifelong protection and the ability to utilize the cash value component of the policy.
- Universal life insurance is a flexible option that allows adjustments to premiums and death benefits.
Further, if you are looking for a policy specifically for accidental death and dismemberment, you can purchase a standalone accidental death and dismemberment insurance policy.
Whether you select a term, whole, universal or standalone accidental death and dismemberment policy depends on your unique needs. With the help of a financial advisor, you will need to determine if your coverage needs are temporary, permanent or flexible. You might also learn that specific accidental death protection is more suitable than a life insurance policy.
Factors That Affect the Cost of Accidental Death Life Insurance
Accidental death life insurance premiums can be influenced by several factors. Insurers use these factors to assess the risk of providing coverage and determine the appropriate cost:
- Age. The older you are, the higher your premiums will be. However, unintentional injuries are a leading cause of death for people age 44 and younger, according to data reported by the U.S. Centers for Disease Control and Prevention.
- Occupation. Certain jobs come with a higher risk of accidents. For example, construction workers or miners may have to pay more for accidental death coverage due to the higher risk in their line of work.
- Lifestyle choices. Engaging in high-risk activities such as skydiving or scuba diving can increase your chances of having an accident. Insurers may charge higher premiums for individuals with these hobbies.
- Coverage amount and term length. The amount and duration of coverage can also impact your premium. Higher coverage amounts and longer terms generally result in increased costs. However, level term life insurance policies offer fixed premiums throughout the policy’s term.
Insurers may also consider other factors such as family medical history when determining rates for accidental death life insurance policies. Compare quotes from multiple providers before choosing a policy that suits your needs.
Is Life Insurance Worth It for Accidental Death Situations?
An accidental death and dismemberment policy is either a standalone policy or a rider added as supplemental life insurance. It pays a death benefit only if death or dismemberment occurs as a result of a qualifying accident, which does not include death from natural causes.
Accidental death life insurance can be worth it, especially for those with a high-risk occupation or hobby. If an unexpected tragic accident occurs, having an AD&D policy can make all the difference for loved ones left behind.
The Bottom Line
Your unique needs will determine whether an AD&D policy makes sense. Age, occupation, lifestyle choices and financial needs are all essential factors to consider when determining which life insurance provider you should select.
When you are evaluating your options, consider any of our top picks for accidental death coverage. Fidelity Life gets our top pick for its accidental death policy, but you may find another provider better fits your needs. It’s recommended to request quotes from multiple providers to make sure you’re getting the best deal available.
Gaining insight into the complexities of AD&D insurance can assist you in making informed decisions about your requirements, as well as working with a fiduciary financial advisor.
Frequently Asked Questions About Life Insurance
AD&D is a type of supplemental insurance that provides additional benefits when an accident results in death or serious injury, such as loss of limbs or paralysis. It can be added as a rider to your existing level term life insurance policy.
While traditional life insurance covers death from any cause, adding an AD&D rider offers extra protection specifically for accidents. Consider your lifestyle and risk factors when deciding whether you need this additional coverage.
Some occupations may pose higher risks than others; however, most insurers will still offer AD&D riders regardless of profession. Be sure to discuss your specific situation with your financial advisor and potential providers before purchasing a policy.
Yes, certain situations are typically excluded from these policies, such as self-inflicted injuries or injuries caused by illegal activities. Make sure you understand the limitations before buying any policy with an AD&D rider.