Accidental and Baby Life Insurance Policies Can be Purchased for Incredibly Low Rates

Accident life insurance is an insurance benefit that is paid if the insured dies in an accident. This type of policy can be obtained as a rider on an existing policy, or can be purchased separately by itself. It is also known as an accidental death and dismemberment policy. These policies are very attractive, because they are extremely cheap. In many cases they cost just a few dollars a month for a large amount of coverage. Most of the time, the policies are designed to pay either double or triple the amount of face value of the policy, depending on what you purchase.

Accident policies also provide for a payout if the insured loses a body part, or if they have a loss of function to a particular extremity of their body. This could include the loss of sight or hearing. These policies do not pay out if the insured does not die of an accident. If you are an active outdoors person, you might want to make sure that your policy will cover you in the event you die of an accident while performing certain activities. In some accident policies, there are clauses that do not allow for a payout if the insured engages in any type of risky activity. Some activities that an insurance company may deem as risky are participating in professional sports, flying, parachuting or even being involved in war.

Baby life insurance may seem like it really isn’t necessary, but actually it is one of the best things that a parent can do for their newborn child. These policies provide lifetime life insurance coverage for a low premium amount that will never increase. Getting this insurance will ensure that your child will never have to pay high life insurance premium rates, even when they are adults. The policy coverage amounts usually range from five to fifty thousand dollars, but when a child reaches adulthood they can usually add additional coverage amounts to the policy. It really just depends on how the policy is set up. There also might be an option available that will allow them to just cash the policy out once they reach adulthood. This is not considered a wise decision, because of the low rates associated with these policies. If they are cashed out, a person would never get anywhere near the same low premium amounts again.

Since baby policies hold a cash value, once a person has reached the age of maturity, they may be able to take out policy loans against the cash value amount. These loans typically have to be paid back. If the person dies after they have taken out a policy loan, and it has not been paid back, then the loan amount will be taken from the policy payout that goes to the beneficiary. Baby policies are a great gift for newborns.

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