Does Life Insurance Cover Accidents?

You finally did it – you bought life insurance.

You head out for lunch, feeling like an official grown up, having done the right thing and applied for life insurance online

And you did it on company time!

Double win.

You take your phone out of your pocket to call your partner with the good news (they’ve been at you for ages to get your  life insurance sorted)

No reply.

You look down at your phone to redial, stumble onto the road and

Yep, you get killed by Pink.

I know, what are the chances.

But what happens now?

Will Your Life Insurance Payout if you die in an Accident?

If your policy has issued, i.e. if you have a piece of paper called a policy certificate with your name on it, then yes, you’re fully covered.

But in this case, the insuere didn’t get the chance to issue your policy; all you did was sign the application form and send it to the insurer.

So, are you covered?

That, my recently departed friend, depends on whether your policy had Temporary Accidental Death Benefit.

What is Temporary Accidental Death Benefit?

Temporary Accidental Death Benefit, let’s call it TADB, is an automatic additional benefit with some life insurance providers here in Ireland.

The insurer will pay out up to €150,000 if you die in an accident within 90 days of them receibing your completed (and signed) application form.

Here’s the legalese:

TADB means death caused solely and directly as a result of an accident caused by violent, visible and external means and independently of any other cause.

And of course, there are some restrictions:

The cover is limited to the lesser of €150,000 or the amount you applied for.
Only available to under 55s with Irish Life, Friends First and New Ireland. Aviva will offer it to under 65s. Zurich Life don’t have an age limit.
The insurers exclude suicide or intentionally self-inflicted injury.

Do all types of protection include TADB?

You can get TADB on the following types of cover

Do you have to pay extra for TADB?

Nope, if included, it’s a free benefit.  And I mean “free”, not “included in the price”. TADB can pay out before the insurer gets any money from you.

Which insurers offer Temporary Accidental Death Benefit?

This is an easy one to answer – all of them bar Royal London who offer TLC instead.

Not that TLC.

You might be totally lost now, if you are, I’m sorry, I’m old OK.

Royal London offer Instant TLC (Temporary Life Cover).

Here’s the skinny:

What is Instant TLC (Temporary Life Cover) from Royal London

If RL accept you for cover online, you’ll enjoy free life cover for up to one week. This gives you some time to take care of any outstanding tasks, such as sending in signed forms like the Direct Debit Mandate or Declaration Form.

Suppose your application is referred to underwriting due to a health disclosure. In that case, you’ll get four weeks of free life cover from the date of your application. This gives you and, if needed, your GP, the time to communicate with the Royal London underwriting team and provide any necessary information.

Instant TLC pays out for death due to any reason, not just accidents unless the claim is caused by intentional self-inflicted injury by the person covered.

But don’t go chasing waterfalls.

Over to You…

Are you sooooo close to free cover?

Have you completed an application form but are mulling over whether to sign it?

Hopefully, this gives you the impetus you need.

You might as well have €150,000 free cover while you think about it.

Tis a no brainer as the fella says.

Need help avoiding the minefields of life insurance – sign up for one of my free email courses.

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Thanks for reading

Nick