Individuals who are responsible for the financial needs or security of their loved ones get concerned. They worry about what would happen in the event of their death. How would their loved ones manage? This is the driving force behind them becoming interested in some type of insurance. Once this happens they are then faced with choices. Do they buy life insurance or accident insurance?

What is Life and Accident Insurance?

accident

Life Insurance is usually paid out when an individual dies from a natural death. Accident insurance is paid out when the cause of death is from an accident.

 Is Accidental Death Insurance the Same as Life Insurance?

These two insurances are not the same. As the payout of the policy is dictated by the cirumstances of death.

Representation of Accidental Death Insurance

It is easy for insurance buyers to get confused about life insurance. Then when one is also looking at accidental death insurance it can get even more confusing. This is partly because of the way that some of the insurance companies promote their insurance products. The following are some example of how some of the different insurance companies offer their accidental death insurance.

Scotia Life Financial

This insurance provider offers a ScotiaLife Accidental Death Insurance.

It is available to the age group eighteen to seventy-four. If you are already a Scotiabank customer you have a guaranteed acceptance into this plan. They are indicating that this is a group plan insurance. There is also exclusions so it means one should study the insurance product carefully before opting into it. For example, death from an accident as a result of drugs or alcohol may be excluded.  Participating as an athlete that leads to death is another exclusion.

Bank Of Montreal

Accidental Death Benefit. You can get between $50,000 up to $250,000. worth of coverage and this could be doubled. There is no medical exam required. Which makes sense as this insurance does not cover natural death. There are several exclusions that include activities inside and outside of the workplace.

Combination Insurance

death

There are several insurance companies that will offer accidental death insurance as an add-on to some of their life insurance policies.

Is Accidental Death Insurance Worth It?

It will be easier to determine the answer to this question based on the information that the Canadian statistics provide. Overall many feel that this insurance is not worth the expense.

Which Type of Insurance Do You Choose?

To make the decision about which kind of insurance to buy you almost have to study the odds against your demise. There are statistics that are gathered in Canada that will give some percentages that may help you figure out your odds of what you could possible die from. When looking at the statistics like this there may be some factors that you want to keep in mind.

Accidental Death

Accidental death is one that occurs for any reason outside of natural causes. How susceptible one may be to this type of death may be dependent on the answers to a few questions. Where the answers can be compared to the stats.

  • Are you involved in any high-risk employment situations?
  • Also, do you participate in any high-risk activities?
  • Do you drive your vehicle on a daily basis?
  • Is travel part of your lifestyle?

Statistics:

Accidental Death

For accidental death caused by any reason aside from natural deaths, statistics are up to 2013. Accidental death holds the fifth spot out of the top ten leading causes of death.

  • As of 2013 the total percentage was 4.5% amounting to 11,452 accidental deaths per year.
  • In the age group, one to 24 years the number of deaths was 2,622. Out of this 36% were as a result of accidents.
  • In the age group of 25 to 44 years, the number totalled 7,409. Out of this 23% were from accidents.
  • For the age group 45 to 64 the number of deaths was 40,996. But the percentage of deaths as a result of accidents dropped to 6%
  • Then for the age group 65 and over the number of deaths were 199,427 with the percentage caused by accident coming in a 3%.

What Do These Statistics Tell You?

The most important sector of information lies within the age group. If you are looking at what your chances are of dying from an accident you want to look at what age category you come under. Then look at the percentage applicable to that age. It shows as the population ages fewer people die an accidental death.

Death by Natural Causes

diabetes

If you are contemplating whether you will die from natural causes, you may want to consider what life-threatening health risks you think you are subject to.

Many individuals are aware of what they believe are the most common types of natural death.

Cancer

The leading cause of death as of the date of 2013 statistics is cancer. In 2013 there were  75,112 deaths as a result of this. Which is 29.8% of the population.

Heart Disease

Heart disease is a common death that many are aware of. It is second on the list for top ten death causes as of 2013. The count was 49,891 which gives it a 19.8%.

Diabetes

Is number six on the top ten list coming in at 7,045 deaths in 2013 at a 2.8%.

Kidney Disease

Then tenth on the list which is one many people don’t think as much about is kidney disease which claimed the lives of 2,978 individuals in 2013 creating a 1.2% of the deaths in the population.

Outside of the top ten list, there are many other different life-threatening diseases. In total, they created 63,534 deaths making up 25.2% of the deaths.

The total number of deaths in 2013 was 252,338. Out of this number, the top ten causes of death claimed their lives in the amount of 188,804 with a percentage of 74.8%.

It all comes down to you as an individual deciding what your risks are. Insurance companies come to their decisions based on risk factors and statistics.

Resources

https://www150.statcan.gc.ca/n1/pub/82-625-x/2017001/article/14776-eng.htm
http://www1.scotialifefinancial.com/slf/en/0,,5085,00.html
https://www.bmo.com/insurance/accident-critical-illness-insurance/accident-death-benefit#benefits-features-section
https://www.sunlife.ca/Canada/sun+aff/Insurance+products/Accidental+Death+&+Dismemberment+insurance+rider
http://business.financialpost.com/personal-finance/accidental-death-insurance-is-usually-a-bad-investment