Temporary Accidental Death Benefit – Free Cover While You Wait

You finally did it – life insurance sorted

You head out for lunch, feeling like an official grown up, having done the right thing and applied for life insurance online…and you did it on company time ?

It’s been a lonnnng process what with all the different options available from the various insurers, but your broker patiently answered your questions and walked you through the minefield that is life insurance.

You take your phone out of your pocket to call your partner with the good news (they’ve been at you for ages to get the life insurance sorted)

No reply.

You look down at your phone to redial, stumble onto the road and…

Brown bread.

What happens now?

Will your life insurance payout if you have an accident?

If your policy has issued, i.e. if you have a piece of paper called a policy certificate with your name on it, then yes, you’re fully covered.

But in this case, you never got to issue your policy; all you did was sign the application form and send it to the insurer.

What happens now?

That, my recently departed friend, depends on whether your policy had Temporary Accidental Death Benefit.

What the hell is Temporary Accidental Death Benefit?

Temporary Accidental Death Benefit, let’s call it TADB, is an automatic additional benefit with some life insurance providers here in Ireland.

It will cover you for €150,000 on accidental death for 30 days (90 days with Zurich ?) from the time the insurer receives your application (together with a completed direct debit), or the insurer accepts or declines your application.

Here’s the legalese:

TADB means death caused solely and directly as a result of an accident caused by violent, visible and external means and independently of any other cause.

And of course, there are some restrictions:

1. The cover is limited to the lesser of €150,000 or the amount you applied for
2. Only available to under 55s with Irish Life, Friends First and New Ireland. Aviva will offer it to under 65s. Zurich Life, ?, don’t have an age limit.
3. The insurers exclude suicide or intentionally self-inflicted injury.

Do all types of protection include TADB?

You can get TADB on the following types of cover from some life insurance providers:

• Mortgage Protection (AKA decreasing term life insurance)
• Life Insurance
• Income Protection
• Pension Term Life Insurance
• Whole of Life Insurance

Do you have to pay extra for TADB?

Nope, if included, it’s a free benefit.  And I mean “free”, not “included in the price”. TADB can pay out before the insurer gets any money from you.

Which insurers offer Temporary Accidental Death Benefit?

This is an easy one to answer – all of them bar Royal London, which is a shame. I predict they’ll amend this on the next revamp of their cover…or when they read this blog post ?

Over to you…

Are you sooooo close to free cover?

Have you completed an application form but are mulling over whether to sign it?

Hopefully, this gives you the impetus you need. You might as well have €150,000 free cover while you think about it.

Tis a no brainer as the fella says.

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