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Difference Between Accidental Death and Life Insurance

Accidental death insurance is a death due to some accident and dismemberment. In this insurance policy the insurance company will pay you money for loss, although this not always for the full policy amount. But the life insurance covers the all instances of death accidental death and dismemberment insurance is particularly specific in what it will cover and what it will not.

There are many large differences between accidental death insurance and standard life insurance.

Difference between Accidental death and life insurance

What is Life insurance

Life insurance pays out in the incident of the policyholder’s death. If the policyholder dies within the time frame that is set out by the insurance policy then their beneficiary will receive the death benefit.

Life insurance policies can be purchased for certain conditions or a lifetime and for varying death benefits with the passage of time. There are many different types of life insurance products, but three standard types explain below:

  • Term insurance: This is purchased for some periods of time. Mostly its duration is from one year to thirty years. At the end of the time frame, the premium price increases if the policyholder wants to continue the policy further more. Like permanent insurance, policyholder offers many different types of riders so that the policy can meet the basic needs of the insured.
  • Whole life insurance: This type is considered in permanent insurance, since the policyholder does not aim to ever let the policy drop. The installments for the policyholder’s entire life expectation are calculated and broken down into monthly or annual payments. The installment is set when the policy is issued and will never increase during the time frame.
  • Universal life insurance: This also considered in permanent life insurance. It is actually a term policy with an allowance attached, acting as a cash account. A Universal life insurance policy can be set up for a lifetime by using the cash account combined with the installments to keep the policy operational.


Life insurance rates are based on different terms and conditions, and there are two factors that affect the policy rates the most, one is the age and other is the health of the applicant which purchased the policy.

Accidental death Insurance

This type of policy covers the accidental death or severe damage in an accident. This kind of insurance can be purchased as a condition on a life insurance policy. It increases the death benefits.

To get an insurance payout from an accidental death policy, death or dismemberment has to be proven to be caused by an accident. In some injuries cover only in a partial payout of the policy.

Accidental death insurance can cover the loss of hearing and speech, sight loss in one or both eyes, loss of arm or leg, or loss thumb or index finger. If accident occurs more than 3 months, the benefit might not be paid out because the resulting death or injury was outdated the specified insurance policy time frame.


Updated: April 12, 2021 — 8:42 pm
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