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Accidental Death Mortgage: The Definition
Under the offered type of mortgage insurance, the insured pays a fixed monthly premium to the provider and they help the loved ones with an accumulated amount in case the insured passes away before repaying their mortgage loan. The most crucial thing about this plan is that the premiums are supposed to be paid consistently and you aren’t supposed to miss them without prior information. Let’s get to know the benefits and necessary facts about the offered insurance plan.
As the name says, accidental death mortgage insurance protects the loved ones from losing their house if policyholder passes away due to an accident. This means if the insured meets an unfortunate incident and passes away, the provider will help the insured’s loved ones with an accumulated amount as the death benefit that they can utilize to repay the outstanding debt and can live peacefully in the same home. At times, the insured is the sole breadwinner of the family and their sudden demise proves a heartbreaking experience for the loved ones. Under such cases, the offered insurance plan helps them financially to protect their homes and take care of their essential expenses.
What Is Accidental Death?
To understand in which situations your loved ones will receive a claim, you are supposed to know what types of deaths are considered an accidental death. Usually, there are some incidents that insurance providers count as accidental deaths that we are mentioning below:
  • Cancer
  • Stroke
  • Heart attack
  • Accidents
  • Chronic Lower Respiratory Diseases
Though some providers have their own set of incidents that qualify as accidental deaths and you are supposed to ask about the same to your provider before you buy a plan.
When Will The Benefits Be Paid?
The insurance benefits are provided to the loved ones when the insured passes away due to an incident mentioned in their policy agreement. Usually, insurance companies cover the insured for cancer, stroke, heart attack, accidents and chronic lower respiratory diseases. This means if the insured meets an accident and passes away due to the same, the insurers will provide an accumulated amount as the death benefit to the loved ones of the insured. Also, if the insured gets diagnosed with a serious illness including cancer, stroke or heart attack and passes away due to the same, the loved ones will be provided a death benefit for the same. This death benefit can be utilized to take care of pending debt, funeral expenses, medical treatment or other essential expenses.
When To Buy This Insurance?
Accidental death insurance plans have been designed to keep the mortgage going and take care of outstanding debt so that the loved ones won’t have to suffer in absence of policyholder. You are supposed to buy this plan along with the mortgage loan, with a suitable coverage amount. Look for a plan that provides a coverage equal to or more than the mortgage loan amount and for the same, you can contact different insurance providers to get multiple mortgage protection insurance quotes easily. Just filling a small form on insurance portals will get you in touch with their agents to discuss the requirements and offer the most suitable plans available. You can ask the queries about each plan offered and they will resolve the same. Depending on the benefits and coverage offered, you can choose a plan that provides the maximum protection at the best price.
What Are The Exclusions?
There are some scenarios when an insurance company isn’t obliged to approve the claim even after the accidental death of an insured and the loved ones might not get anything even after paying the premiums for long. The loved ones won’t get a claim if the insured passes away as a result of:
  • Trying to commit a felony.
  • Getting involved in an illegal occupation.
  • Making a suicide attempt.
  • Consuming alcohol or drugs.
  • Driving while being drunk or intoxicated.
  • Getting involved in risky adventures including but not limited to motor racing, skydiving, hand gliding, underwater sports or mountain climbing.
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