What Is Considered Accidental Death in Life Insurance?

Accidental Death and Dismemberment (ADD) insurance coverage is available to you through most insurance companies as a rider to an existing life or health insurance policy. If you travel frequently, have a high-risk job or participate in extreme sports (for example, skydiving, bungee jumping, auto racing) the insurer will pay additional benefits if you die or are injured in ways specifically defined by the policy.

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Definitions and Exclusions

Most insurers define an accidental death as one that occurs without warning or anticipation. If you routinely engage in what insurers consider high-risk activities (bungee jumping, skydiving, auto racing for example), the itemization of qualifying deaths can exclude certain types of death.

Transportation Accidents

Death by Misadventure

If you die as the direct result of what insurance companies term "misadventure" (murder, fatal falls, work-related or industrial accidents and similar), your insurer will investigate the circumstances of the death and pay your beneficiary two or three times the face value of your policy. The payout conditions are identified in the ADD policy rider.

Benefit Qualifications

Assessing Risk vs. Cost

Insurance companies use actuarial tables to calculate risk and determine premiums. If you buy an accidental death and dismemberment rider, decide whether the likelihood of dying accidentally justifies the insurance premiums you must pay for the policy.