Generally, the benefit payable on your accidental death insurance will not reduce as you age. If you are eligible, you may be able to increase your benefit to a justifiable amount. On top of this, payouts typically increase in line with the Consumer Price Index (CPI) each year.
Policies can also include guaranteed insurability, where you can increase your sum insured to suit personal life events, like marriage and having children.
Accidental death insurance does not cover heart attacks if they occur naturally. However, if a heart attack arises from an accident, it is possible the insurer may provide cover.
Term life insurance policies pay a lump sum in the event of death or terminal illness. These policies pay for accidental death, as well as a range of other deaths, like those arising from a pre-existing condition. As it is a more comprehensive level of life cover, term life insurance premiums can be more expensive than premiums for stand-alone accidental death policies.
Accidental death insurance is typically a standard feature in comprehensive life insurance policies. It is possible to receive accidental death cover as a standalone product, however many prefer to bundle it with other life insurance products to increase value for money, as well as to increase cover for all kinds of situations.
It’s important you realise accidental death insurance may not provide all the cover you need for your circumstances. For example, if you pass away because of a pre-existing condition or an illness, your beneficiary will not receive a benefit. Some life insurers offer cover for different types of death, but this will generally cost more in premiums than policies that only cover accidental death.
Generally, most Australian or New Zealand citizens aged 18 to 75 can take out accidental death insurance, as well as most permanent residents living in Australia. Aside from this, there are usually limited restrictions on who can take out this type of policy.