Supporting Each Other During Challenging TimesLearn more about how we’re responding to Coronavirus (COVID-19)

What is living insurance?

You’ve probably heard of auto insurance, health insurance, homeowners insurance, and life insurance. But living insurance—is that something new? Living insurance is another name for a type of insurance that has been around for a while—it’s also sometimes called accidental death and dismemberment (AD&D) insurance. This type of insurance could provide benefits to you if you’re permanently injured in an accident and could provide benefits to your loved ones if you are killed in an accident.

What does living insurance cover?

Living insurance covers you in case of certain types of serious covered accidents. If you lose a finger, hand, leg, or other limb (also called dismemberment) as a direct result of an accident, living insurance could provide you with a benefit. You can use the money to help with medical expenses, lost wages due to being unable to work, or whatever you need.

Living insurance also covers certain types of accidental death. If you are killed in an accident, living insurance could provide a benefit to your loved ones.

In addition to covering accidents, some living insurance policies contain riders (policy add-ons) that cover specific types of diseases and health problems, too. Coverage is available for cancer, stroke, or heart attacks.

It’s important to realize that living insurance policies usually only pay for certain types of accidental deaths (unless your policy includes the medical coverage mentioned above). Depending on your personal situation, you may want to have life insurance and living insurance to make sure your loved ones receive the benefits they may need.

What types of living insurance coverage are available?

You can choose single coverage, which only covers you. You can also choose family coverage, which covers you, your spouse, and any of your dependent or handicapped children. Coverage amounts vary, based on your family members and your policy.

Do I need living insurance?

That’s a question only you can answer. If you work in an industry that has a risk of accidents in which you could die or lose a finger or a limb (some examples include construction, transportation, mining, and farming) you might want to consider purchasing living insurance. If you have a hobby that involves heavy machinery, saws, or cutting tools, living insurance might be right for you. Every policy is different, though, so be sure you know what types of dismemberment and accidents a policy covers—and does not cover—before you buy it.

Your health might influence your decision, too. As mentioned earlier, some living insurance policies now offer coverage for cancer, stroke, or heart attacks. You might want to consider a living insurance policy with one of these riders if you’re worried about these types of diseases or health problems.

How can I get living insurance?

There are different ways to purchase living insurance. Some insurance companies offer it as a stand-alone policy. If you have a life insurance policy, you could ask your insurance company if living insurance is available as an add-on. Your employer might even offer living insurance as part of your employee benefits package.

If you look into buying living insurance, be sure you know and understand the benefits and exclusions of each policy you consider. A policy usually spells out exactly what types of dismemberment are covered. Policies usually have strict definitions of what an “accident” is, too. Look at the benefit amounts for different accidents and consider whether that would be enough to cover you and your loved ones. As always, make sure a policy is right for you before you buy it.

How to learn more about life insurance

Life insurance may seem complicated, but it’s not that hard once you know the basics. Of course, we are happy to help. You can also use the TruStage Life Insurance Calculator to compare different types of insurance and learn more about your options.

Keep reading:

What are the different types of life insurance?
It may seem simple but understanding insurance types can also be confusing. We’ve broken down a few of the most common types of life insurance policies to simplify things.

What should I look for in a reputable insurance company?
Cost isn’t everything in choosing the best life insurance policy. There’s also a lot to be said about choosing an insurance company you can really trust.

How much life insurance do you need?
This article walks you through several popular methods for estimating how much life insurance you need to ensure your family’s future.

Life insurance when you're young
It’s tempting to put off buying life insurance when you’re young, especially if you’re just starting out and money is tight. But there are two good reasons to buy life insurance now instead of waiting.