Death Indemnity Auto Insurance

Many people don't like to think about the possibility of death due to a car accident ; thus, they avoid thinking about death indemnity coverage. Much like life insurance, death indemnity coverage evokes emotions about a subject matter that some people simply want to avoid. However, this death indemnity auto insurance may be critical to your loved ones if you should die in an automobile crash and aren't otherwise covered.

How death indemnity auto insurance works

Death indemnity coverage is often paid to a surviving spouse, parents of minors or the insured's estate. The insured must have been occupying the car when the death occurred, or if on foot, the death has to occur after getting struck by a motor vehicle. It will not cover death by causes that are not related to being struck by a motor vehicle. For those instances, you'll need other types of insurance, such as term life insurance. Also, it's important to note that a death doesn't have to be immediate to qualify under this plan. Some plans will allow coverage for death that occurs within 90 days of the accident.

Life insurance vs death indemnity insurance

If you have life insurance, you may already have the same expenses covered under a death indemnity coverage policy. If you have a life insurance policy as a part of a benefits package at work, or if you've purchased one separately, review it carefully to see if the amount of coverage for funeral costs is enough. For example, an average cost of burial and related expenses is more than $5,000. If your life insurance plan does not cover that, plus additional monies to a surviving spouse or beneficiaries for your loss of income, then consider supplementing your policy with death indemnity coverage.

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