Recently, I got an upsell from my life insurance carrier offering $500,000 in accidental death insurance for $33 a month. This is on top of my existing 20-year term life insurance policy coverage of $750,000.
It sounded like repetitive coverage. But I was interested in learning more since I actually wanted to get at least a $1 million term life insurance policy until my kids are adults, but couldn’t. $750,000 was the most SBLI was willing to cover without a medical exam. And I didn’t want to draw blood.
If I got an accidental death insurance policy, I would then have $1,250,000 in total coverage for accidental death. This is different from receiving $1,250,000 in total life insurance coverage.
Is accidental death insurance necessary on top of regular life insurance coverage? I had to investigate further and understand the difference.