Do Accidental Death Insurance And Life Insurance Cross Over?


In the aftermath of a tragedy, it is helpful to know that you and your family will be financially protected if you lose someone you love. Insurance has always been an investment used to protect ourselves and our families in unforeseen and difficult circumstances.

So, when it comes to purchasing life insurance, the type of life insurance product you purchase does matter. There are two products that pay a benefit upon someone’s death – accidental death insurance and life insurance.

Most people are familiar with Life Insurance. However, not everyone is familiar with accidental death insurance. And even if someone has heard of accidental death insurance, they often end up getting confused between the two products.

In order to make an informed decision on any insurance you purchase, it is crucial to understand the product beforehand.

So, why are there two similar, yet different insurance products whose primary goal is to provide financial support to the insurer’s family after death? Do accidental death insurance and life insurance cross over in some respects?

Let’s find out.

Similarities Between Accidental Death Insurance And Life Insurance

Both Accidental death insurance and life insurance policies have the same goal – to ensure that the family members of the person who has died do not have to suffer financially as a result of his/her death. These family members are often dependent upon this person to provide financially.

Both insurances provide lump sum amounts to the beneficiaries, if the insured person dies.


You should always do your research into the different types of insurance policies, before deciding what policy to purchase. Credit: Unsplash


Differences Between Accidental Death Insurance And Life Insurance 

A life insurance policy will pay a benefit when the death results from ‘any cause’, meaning both injury & sickness. An accidental death policy will pay a benefit if the death is the result of an injury only, i.e., it does not pay a benefit if the death was caused by sickness. A life insurance policy can only be provided by life insurance companies. An accidental death insurance policy can be provided by both general and life insurance companies.

The reason it’s called ‘accidental’ death insurance is because the definition of an injury includes the need for it to be unforeseen/accidental. Examples of death by injury are auto accidents, plane crashes, construction accidents, construction collapses, falls, poisonings and drownings.

The main selling point for accidental death insurance is that it is a lot cheaper than life insurance, due to it not covering death by sickness. No medical testing is required in order to purchase the policy.

You can easily purchase accidental death insurance cover and secure your family financially, usually if you are under 70 years of age. Accidental death insurance even covers the policyholder if he/she is badly injured in an accident, and then dies within 12 months as a result of these injuries.

On the other hand, a life insurance policy covers you no matter the cause of death, excluding death by suicide, death in a war zone, or any others mentioned in the policy documents.

However, it is comparatively more expensive, and you are required to undergo medical testing and provide a report to your insurer before you can successfully purchase life insurance cover.


Protecting your loved ones is the best possible reason to purchase an insurance policy that will protect them if something were to happen to you. Credit: Unsplash


Can I Have Both Life Insurance And Accidental Death Insurance?

Suppose your life insurance policy doesn’t cover enough to make your family financially secure, or you are involved in hazardous activities often, that gives you a higher risk of dying from an accident. In that case, it’s a good idea to consider having an accidental death insurance policy too. It’s cheaper and you can get a policy even if you have some medical problems.

No matter what policy you choose to take out, it is always important to choose an insurer that is trustworthy and reliable such as Aspect Underwriting.

Aspect Underwriting is a boutique insurance agency that specialises in income protection insurance, accidental death insurance, trauma insurance, and TPD insurance.

The best part about working with Aspect is that you can purchase any of their insurance policies online within 10 minutes, without having to call or meet with anyone.

Mike Wallis

Mike has over 25 years experience, having spent his first seven years working as a Broker at Jardine Lloyd Thomson in Melbourne and in 2002 was transferred to JLT’s Accident and Health Department in London. For four years (2002 – 2005) Mike was a specialist A&H Lloyd’s Broker and during this time developed excellent relationships with the Lloyd’s A&H underwriting fraternity. In 2006 he returned to Australia in a senior broking position with overall responsibility for Placement Strategy, including the implementation of underwriting facilities and the various authorities granted by Lloyd’s. Mike was the underwriter at two specialist Underwriting Agencies prior to founding Aspect Underwriting in 2016.

Leave a Reply

Notify of