Understanding Accidental Life Cover: What You Need to Know

Accidental Life Cover is a type of insurance that provides a lump sum benefit to your beneficiaries if you pass away due to an accident. For a claim to be successful, the event must be deemed unplanned or unforeseen, resulting in accidental death. This type of cover is designed to offer financial support to your loved ones during a difficult time.

What Does Accidental Life Insurance Cover Include?

Your policy schedule will specify the amount of coverage you have under Accidental Life Insurance Cover. This lump sum can be used by your beneficiaries to pay off debts such as a home loan or credit cards. Additionally, it can help cover future financial needs, including school fees, daily living expenses, and the costs associated with raising children.

One of the main advantages of Accidental Life Cover is its affordability. Since it only covers specific circumstances—namely, accidental death—the premiums are generally lower compared to a standard Life Cover policy. However, this also means that the coverage is less comprehensive.

Coverage Details of Accidental Life Cover

What is Covered:

• Death caused by an Accident: Yes

What is Not Covered:

• Death caused by an Illness: No
• Partial Disability caused by Illness or Accident: No
• Total Disability caused by an Accident: No
• Total Disability caused by an Illness: No
• Serious Injury Caused by Accident: No

Common Exclusions in Accidental Life Cover

Accidental Life Cover policies often have specific exclusions. These may include:

• Working at heights
• Working underground
• Unlawful or criminal acts
• Aerial flying, unless as a passenger operated by a licensed pilot or airline
• Hazardous recreational activities, such as motor sports, base jumping, rock climbing, and certain contact sports
• Self-inflicted acts that cause death
• Mental illness
• Joining the armed forces

Conclusion

Accidental Life Cover can be a valuable addition to your insurance portfolio, providing financial security for your loved ones in the event of an accidental death. However, it’s important to understand the limitations and exclusions of this type of policy. By knowing what is and isn’t covered, you can make an informed decision about whether Accidental Life Insurance Cover is right for you.

If you need more information or further assistance, feel free to reach out to Morgans Insurance Advisors as your preferred life insurance broker for an obligation-free consultation. We’re here to help you navigate your insurance options and find the best coverage for your needs.