Accidental Death Insurance Policies

Accidental Death Insurance Policies

Accidental death policies are often purchased by people concerned about burial costs. The premiums charged for accidental death policies are modest compared to standard life insurance. Accidental death policies contain severe limitations on what qualifies as an accidental death. Neither illness nor the natural consequences of illness qualify as accidental death. When making a claim under an accidental death policy, the policy provisions must be read extremely carefully because virtually all deaths relating to illness or medical condition are excluded. Under some policies, even medical malpractice resulting in death does not qualify because the medical malpractice would not have taken place but for the original medical condition. Not even the cause of death listed on the official death certificate will be binding on the insurance company. The terms of the policy will control.

Accidental deaths might involve shootings, stabbings, automobile or airplane crashes, accidental falls, hunting accidents. These deaths would be covered under the policy. Sometime an accidental death insurer will make decisions that are counter-intuitive. We handled a claim where the insured died in a motorcycle accident. The insurance company attempted to avoid paying our client based on the fact that the insured had several drinks before the crash. The theory of the insurance company was that driving a motorcycle while intoxicated was the equivalent of committing suicide, thereby disqualifying the decedent from coverage. Even though the position of the insurance company appears absurd, the company hired a lawyer and defended the lawsuit before acknowledging the error of its ways.