Why is Accidental Death Insurance Cheaper Than Regular Life Insurance?

Shawn Plummer

CEO, The Annuity Expert

Why is Accidental Death Insurance Cheaper Than Regular Life Insurance?

Accidental death insurance is typically more affordable than regular life insurance for several key reasons:

1. No Underwriting

  • Simplified Process: Accidental death insurance often requires no medical underwriting, unlike traditional life insurance, which usually involves detailed health assessments.
  • Lower Administrative Costs: The lack of underwriting reduces administrative costs for the insurer, savings that are often passed on to the policyholder in the form of lower premiums.

2. Specific Coverage Scope

  • Limited to Accidents: This type of insurance only pays out in the event of an accident. It does not cover deaths due to health issues like cancer, heart disease, stroke, etc.
  • Reduced Risk for Insurers: Since the policy only covers accidental deaths, the overall risk to the insurance company is lower compared to a regular life insurance policy that covers a wider range of death causes.

3. Lower Maximum Face Amounts

  • Capped Benefits: Accidental death policies typically offer lower maximum face amounts than regular life insurance policies.
  • Risk Management: Lower benefits mean reduced financial risk for the insurer, allowing them to offer coverage at a lower cost.

Alternative: Life Insurance with Accidental Death Rider

For those seeking comprehensive coverage, combining regular life insurance with an accidental death rider can be a more inclusive option: Adding a few more dollars to your premium can add an Accidental Death Benefit rider to your life insurance policy with no additional underwriting.

  • Enhanced Protection: A regular life insurance policy covers various death causes, including health-related issues.
  • Added Benefit of Rider: An accidental death rider provides additional coverage in the event of death by accident, often doubling the payout.
  • Maximized Coverage: This combination ensures more extensive protection, covering both natural and accidental causes of death.

Access quick and easy life insurance quotes to make the best decision for your family.

Accidental Death Insurance vs. Life Insurance with Rider

FeatureAccidental Death InsuranceLife Insurance with Accidental Death Rider
Coverage ScopeOnly accidentsAll causes of death, plus extra for accidents
Underwriting RequiredNoYes (for the base life insurance policy)
Maximum Face AmountGenerally lowerHigher, with added benefit from the rider
CostLowerHigher, but more comprehensive coverage


Accidental death insurance offers an affordable, albeit limited, form of coverage focused solely on accidental death, with no underwriting and lower maximum payouts. For those seeking more comprehensive coverage, a regular life insurance policy with an accidental death rider provides broader protection against various scenarios.

Contact us today for a free quote.

Request A Quote

Get help or a quote from a licensed financial professional. This service is free of charge.

Contact Us

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

Scroll to Top