The quiet strength of funeral expense products is the accident layer: the protection that is already complete from day one. There are significant differences between products here too – it is worth knowing them.
- For accidental death, cover typically applies from the commencement of cover, with no waiting period.
- On several products, accidental death is paid at an increased amount.
- Some products include a built-in element for permanent health impairment caused by an accident – this pays out during your lifetime.
Why is an accident treated as an exception?
The logic of the waiting period offsets the absence of a health assessment – an accident, however, is a sudden event that was not carried in advance, so insurers typically provide this cover from day one, at the full amount. In practice, this means the contract is not an empty piece of paper even in the period right after signing – accident protection is active immediately.
Increased accident benefit
There are products on the market that pay more than the base amount for accidental death, at a level that varies by product – with some as much as double – and others that pay an additional element for a traffic accident. These are real differences between two offers with similar premiums; the comparison table gives accident rules their own row. It is also worth keeping an honest sense of proportion: most deaths are not accidental – the increased accident benefit is a useful extra, but it is not the core of the product.
Built-in disability element: a benefit during your lifetime
Some funeral expense products also build in an element for severe accident-related health impairment: at a defined degree of permanent impairment, the insured receives a benefit during their own lifetime. This already borders on the territory of classic accident insurance – anyone for whom this protection matters should also look at solutions specifically designed for it; the built-in element of a funeral expense product is a good addition, but it does not replace them.
Exclusions within the accident cover
For accident benefits, the exclusion lists are typically stricter: typical items include the range of particularly dangerous sports and competitive motor sports; for an accident caused while intoxicated or without a driving licence, the insurer is typically exempt from paying – and the burden of proving this lies with the insurer. The exact list varies by insurer. This is not meant to alarm you: the cover is there for the accidents of ordinary life – knowing the exceptions is simply part of comparing products. The coverage article covers the full topic of exclusions.
Have a question about your own situation? Let’s talk it through, calmly – 20 minutes, free of charge →
