Is Accidental Death Insurance Expensive
Jason Stolz CLTC, CRPC
Is accidental death insurance expensive? In most cases, no. Accidental death insurance—often referred to as Accidental Death & Dismemberment (AD&D) coverage—is one of the most affordable forms of supplemental protection available. It pays a cash benefit if you die or suffer a qualifying injury due to an accident. At Diversified Insurance Brokers, we help clients understand how this coverage fits into a broader protection strategy alongside life, disability, and health insurance.
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See policy costs, coverage levels, and exclusions—or request a personalized quote to find out how affordable this coverage can be.
How Much Does Accidental Death Insurance Cost?
Because accidental death insurance only covers deaths or severe injuries from an accident—not from illness or natural causes—it’s generally far less expensive than traditional life insurance. In many cases, people can secure meaningful coverage for only a few dollars per month. The exact cost depends on your age, benefit amount, and whether you buy an individual policy or get it through your employer.
For example, $100,000 of accidental death coverage might cost under $10 per month for an individual, while higher benefit levels or family plans cost modestly more. Group AD&D policies are often available for even less, sometimes included as part of workplace benefits.
What Does Accidental Death Insurance Cover?
AD&D insurance pays benefits if you die in an accident or experience certain qualifying injuries, such as loss of limb, eyesight, or paralysis. Some policies also include double indemnity provisions, which increase the payout if the accident occurs while traveling as a fare-paying passenger on public transportation.
Coverage typically includes:
- Death caused by a covered accident
- Loss of one or more limbs, sight, or hearing
- Paralysis or coma resulting from an accident
It does not cover death due to illness, natural causes, suicide, or non-accidental events. Because of these limits, AD&D is meant to complement—not replace—traditional life insurance.
Why It’s So Affordable
The affordability of accidental death insurance comes from its narrow scope. The insurer’s risk is limited to specific events, so premiums are low. It’s ideal for people who want to add extra financial protection without committing to the higher cost of a full life insurance policy. Many policies also don’t require medical exams or health questionnaires, making them easy to qualify for.
Who Should Consider It?
- Workers in higher-risk occupations: Construction, delivery, transportation, and manufacturing employees often choose AD&D for additional peace of mind.
- Families seeking extra protection: It’s an affordable way to boost total coverage alongside life insurance.
- Individuals with limited budgets: For those who can’t yet afford full life insurance, AD&D can serve as an interim safety net.
- People with health challenges: Since many AD&D policies are guaranteed issue, they can provide some level of coverage even when medical underwriting makes life insurance difficult to obtain.
Key Considerations Before Buying
- Understand exclusions: Every policy defines what qualifies as an accident—review details carefully.
- Compare costs per $1,000 of coverage: Premiums vary, so comparing multiple carriers ensures you’re getting the best rate.
- Review your current coverage: Many employer plans already include a basic level of AD&D protection at no cost.
- Consider adding riders: Some policies offer family coverage or child riders for a small additional cost.
How Accidental Death Insurance Fits Into a Broader Strategy
Accidental death insurance is rarely the only policy you’ll need. It’s best used as a supplement to life, disability, or health coverage. For instance, if you have term life insurance to cover income replacement, AD&D can provide an extra lump-sum payment in the event of an accident—offering an additional layer of security for your loved ones.
For self-employed individuals or those without employer benefits, AD&D can be paired with individual life and disability coverage for comprehensive protection. The advisors at Diversified Insurance Brokers can help you design a blended strategy that fits your goals and budget.
Example: How Affordable It Can Be
Let’s say a 40-year-old individual purchases $250,000 in accidental death coverage for $12 per month. If they pass away in a qualifying accident, their beneficiary would receive the full $250,000 benefit. The policy’s total annual cost—$144—can provide meaningful peace of mind at an extremely low price point.
When It’s Not Enough
While accidental death insurance can be valuable, it’s important to remember that most deaths are not caused by accidents. Relying solely on AD&D leaves your family vulnerable to financial loss from illness, disease, or other natural causes. For full financial protection, it’s smart to pair AD&D with a term or whole life policy and possibly disability insurance to protect your income if you’re unable to work due to illness or injury.
Get Expert Help Comparing Coverage
At Diversified Insurance Brokers, we compare policies from more than 75 carriers to ensure you get affordable, effective protection tailored to your situation. Whether you’re exploring stand-alone AD&D coverage or looking to integrate it with your life or disability plan, we’ll help you understand the options and find the right fit.
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FAQs: Accidental Death Insurance
How much does accidental death insurance cost?
It varies based on coverage amount, age, and plan design—but many policies start at only a few dollars per month for tens of thousands of dollars of benefit.
Does accidental death insurance cover death by illness or natural causes?
No. Typically it only covers deaths caused by sudden, unforeseen accidents—not illness, natural cause, suicide, or self‐inflicted injuries.
Can I buy accidental death insurance on its own?
Yes. You can purchase standalone AD&D coverage, or add it as a rider to life or disability insurance policies.
Who should consider this type of insurance?
Anyone wanting inexpensive additional protection for accidental death, especially if they have dependents, a high-risk job, or have trouble qualifying for traditional life insurance.
Is accidental death insurance a good substitute for life insurance?
No. It should be used as a supplement, not a substitute. Because it only covers accidents, it doesn’t offer the broad protection that life insurance does.
About the Author:
Jason Stolz, CLTC, CRPC, is a senior insurance and retirement professional with more than two decades of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient.
