Accident and term life insurance

Accident insurance covers death and permanent disability (partial or total) caused by accident. An accident is defined as being caused by a violent, external, visible force and excludes illness, self-inflicted injury, natural disasters, war and certain other risks.

Term life insurance covers death and permanent total disability arising from accidents and illness. Nearly all causes of death are covered, except for suicide during the first year of the insurance.

The premium for accident insurance usually vary according to occupation (in a few broad categories), and does not vary according to age.

The premium for term life insurance varies according to age. It can be two times of accident insurance at the younger ages, and much higher at the older ages.

It is better to buy term life insurance to protect the family from death arising from all causes. Alternatively, you can buy say $50,000 in term life insurance and say, an additional $150,000 in accident insurance.