How Does Death Insurance Differ From Life Insurance?
posted June 22, 2009 - 12:51am
Death Insurance Is Not Life Insurance
Accidental Death and Dismemberment Insurance is an insurance coverage that provides and pays for benefits when an insured person dies from accident or suffers any dismemberment that will incapacitate him or her due to an accident. Death or dismemberment must be from accident.
Life insurance is an insurance coverage that pays for benefits when an insured person dies either from accident or natural death.
In an event where a person gets an accident and survive from it at the cost of losing a limb or other body parts, life insurance will not pay for this. It is your accidental death and dismemberment insurance that will cover and pay for the benefits when you lose your limb.
It is therefore important that before you buy your insurance policy you read very carefully and thoroughly and make sure that you understand the stipulations in the fine prints contained in your insurance policy.
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