Can You Cash Out an Accidental Death Policy?

Shawn Plummer

CEO, The Annuity Expert

Can You Cash Out An Accidental Death Policy?

Accidental death policies, often part of life insurance, provide benefits if the insured person dies due to an accident. These policies are distinct from traditional life insurance policies in several ways.

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Key Characteristics

  • Purpose: Specifically designed to cover accidental deaths.
  • Benefit Payout: Paid to beneficiaries if death occurs due to an accident.
  • Exclusions: Certain types of deaths (e.g., natural causes, illness) are not covered.

Cash Value Aspect

  • No Cash Value: Accidental death policies typically do not accumulate cash value.
  • No Cash-Out Option: Unlike some life insurance policies, you cannot cash out an accidental death policy.

Comparison With Traditional Life Insurance

  • Life Insurance: Often has a cash value component, allowing for cash-out options.
  • Accidental Death Policy: Solely provides a benefit upon accidental death with no cash value feature.

Why No Cash-Out Option?

  • Risk Coverage: These policies are meant to cover specific risks, not to serve as investment or savings vehicles.
  • Affordability: Generally more affordable than life insurance due to the absence of a cash value component.

When Are Benefits Paid?

  • Upon Accidental Death: Benefits are paid to the named beneficiaries.
  • Verification: The insurer may investigate to confirm the cause of death aligns with the policy terms.


Accidental death policies are designed for specific coverage without a cash value component, hence, they cannot be cashed out. They provide financial protection to beneficiaries in case of accidental death but do not offer the savings or investment aspects of some life insurance policies. Understanding these distinctions is crucial for making informed insurance decisions. Contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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