Accidents can strike when we least expect them, and can even be life-threatening or fatal. Generally, life insurance provides a death benefit to your family and/or loved ones regardless of the cause of death, including accidents.
If you have life cover, you should know what causes of death can or cannot result in a payout. In this guide, we'll look at some examples of accidental death and how life insurance policies typically respond to such events.
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What is considered 'accidental death' for life insurance?
Accidental death can be defined as a death caused by unforeseen and unintended events. This can include incidents such as car accidents, falls, drowning, and other incidents that lead to death without any intent to cause harm.
When it comes to life insurance, accidental death is typically recognised when there is clear evidence that natural causes or pre-existing medical conditions did not cause the death.
Most insurers should provide cover for deaths that are classified as accidental, as long as the policyholder has maintained their monthly premiums and the policy is active at the time of death.
It's also important to disclose any medical conditions or risky activities when you apply, as these factors can influence cover and payouts. For example, if the cause of the accident was brought on by a known pre-existing condition, dangerous hobby or occupation that was not disclosed, the insurer may deny the claim.
Does life insurance only cover accidental death?
A life insurance policy generally pays out a benefit regardless of whether the death was accidental, natural, or caused by illness.
Some policies may offer additional cover options specifically for accidents through an accidental death policy. This provides a single tax-free lump sum if you die as a result of unintentional injuries or deaths classed as accidental. However, it won't cover other types of death, such as those resulting from natural causes or illnesses, which is where life insurance can offer greater protection.
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Does term life insurance cover accidental death?
Term life insurance will cover an accidental death, providing the policyholder passes away within the agreed policy term. When you apply for term cover, you decide how long you want the policy to last, allowing you to tailor it to your specific needs. If the policyholder dies within that period due to an accident, the recipients will receive the agreed-upon amount.
Does whole life insurance cover accidental death?
Unlike term cover, whole life insurance offers lifelong protection. It covers accidental deaths just like term life insurance. As long as the policy is active and your premiums have been paid up to date, your family and/or loved ones will receive the full amount of cover, whether the cause of death was accidental or due to natural causes.
How can I file a claim for accidental death?
If you are the beneficiary of a life insurance policy and need to file a claim for accidental death, you'll need to contact the insurer directly.
When doing so they will likely ask for some details including:
The deceased's full name and address
Policy number
Certificate of insurance issued when the policy was purchased
Cause of death listed on the death certificate (this can be supplied by a funeral director or the General Register Office)
Your identity and relationship with the deceased
The insurer may wish to investigate further to make sure the death was accidental, and no fraudulent activity was involved. This may include reviewing police reports or any other relevant documentation.
Not sure if your loved ones had a policy? Learn how to check if a life insurance policy exists.
If you have any questions regarding the claims process please get in touch with Cavendish Online on
01392 43 94 37
(Monday to Thursday 9am – 5.30pm, Friday 9am – 5pm).
