ACCIDENTAL LIFE COVER : What is it, and do you have the wrong kind of Life Cover?
I come across a lot of clients that tell me that their existing life cover is very affordable, only to inform them, after some digging, that it's because their cover will only pay out on an accidental death. This is often not disclosed during the application process, leaving clients misinformed.
When it comes to life insurance, it's essential to make sure that your policy provides adequate coverage to protect your loved ones in the event of your death. While many insurance policies offer accidental-only death coverage, it's important to ensure that your policy covers more than just accidents.
Accidental death coverage typically pays out a benefit if the policyholder dies as a result of an accident, such as a car accident, crime or workplace incident. However, it's important to note that accidental death coverage will not pay out if the policyholder dies from natural causes or illness.
This is why it's crucial to have life insurance coverage that goes beyond accidental death. A comprehensive life insurance policy will cover a broad range of causes of death, including natural causes, illness, and accidents.
By having life insurance coverage that covers more than just accidental death, you can ensure that your beneficiaries are protected, no matter how you pass away. This type of coverage can help your loved ones cover expenses such as funeral costs, outstanding debts, and living expenses.
It's also important to note that life insurance policies can vary widely in terms of the level of coverage they provide. It's essential to review your policy regularly to ensure that it still meets your needs and provides the coverage you require.
When reviewing your policy, it's essential to consider factors such as your age, health, income, and the needs of your beneficiaries. If your circumstances have changed since you first took out your policy, you may need to adjust your coverage to ensure that it still provides adequate protection for your loved ones.
In addition, if you have any existing health conditions or a family history of illness, it's essential to disclose this information to your insurance provider. Failing to disclose this information can result in your policy being invalidated, which can leave your beneficiaries without the protection they need.
If you cannot obtain comprehensive life cover, due to health or other factors, then accidental cover is a close second best, and has it's place, but it's essential to ensure that your policy covers more than just accidents. By having comprehensive life insurance coverage, you can ensure that your loved ones are protected, no matter how you pass away. Make sure to review your policy regularly and disclose any relevant information to your insurance provider to ensure that your coverage meets your needs.
071 671 4301
francois@innovativefas.co.za