Accidental Death
Accidental Death Cover pays a lump sum if you pass away as the direct result of an accident. It does not provide cover for death caused by illness or natural causes.
Accidental Death Cover is designed to provide financial support to your loved ones if you die as a result of a covered accident. If your death meets the policy's definition of an accidental death, the insurer will pay a lump sum to the policy owner or nominated beneficiary.
Unlike Life Cover, which generally covers death from most causes (subject to the policy terms), Accidental Death Cover only pays if death is caused by an accident. This means illnesses such as cancer, heart disease or stroke are generally not covered.
Because it covers fewer events, Accidental Death Cover is often more affordable than comprehensive Life Cover. It may suit people looking for a basic level of protection or those who are unable to obtain traditional Life Cover due to their health. However, it's important to understand that the circumstances in which a claim can be made are much more limited.
Before choosing Accidental Death Cover, it's worth considering whether it provides the level of protection you and your family need. An adviser can help you compare it with Life Cover and determine which option is most appropriate for your circumstances.
Why It Matters
Understanding the difference between Accidental Death Cover and Life Cover is important. While Accidental Death Cover can provide valuable financial protection, it only applies in specific situations and may not cover many of the most common causes of death.
Common Misunderstandings
"Accidental Death Cover is the same as Life Cover."
No. Life Cover generally provides protection for death from illness and accidents, while Accidental Death Cover only applies if death results from a covered accident.
"Every unexpected death is considered accidental."
Not necessarily. A policy's definition of an accident determines whether a claim is payable.
"It's a cheaper version of Life Cover with the same benefits."
No. It's generally less expensive because it provides cover in fewer circumstances.
"I don't need Life Cover if I have Accidental Death Cover."
That depends on your needs. Many people choose Life Cover because it provides broader protection for their family.
FAQs about Accidental Death
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This depends on your insurer's policy wording, but it generally refers to death caused directly by an unexpected accident.
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No. It generally only covers death resulting from a covered accident.
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Yes. Because it provides more limited cover, premiums are often lower than comprehensive Life Cover.
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It may suit people looking for basic protection or those who are unable to obtain traditional Life Cover, although it's important to understand its limitations.
Choosing the right type of life insurance starts with understanding your options. If you're unsure whether Accidental Death Cover or comprehensive Life Cover is the better fit for you, talk to a New Vision Financial Services adviser. We'll help you compare your options and choose cover that protects what matters most.