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Accidents happen all the time and everywhere. You can be as careful as a meerkat in the desert, but that doesn't mean anyone else around you doesn't make a mistake which may affect you and that person reliable may not have any personal liability insurance or any money to compensate you. Apart from that natural occurrences such as storms, flood, or whatsoever are a multitude of risk which can be the causes of accidents too.

Accidental death & dismemberment insurance (AD&D) and / or Life insurances are insurances were the insured person or an beneficiary receives a lump sum for any insured loss. In insurance, AD&D policies pay out if the cause of death or dismemberment is an accident. This is basically a limited form of life insurance which is generally less expensive. Life insurances on the other hand pay out to the beneficiary not only in case of an accident. However, there are some restrictions such as self inflicted death, fraud, war, or riot for example. 

In addition, more and more common requests are critical or terminal illness insurances, which usually can be added as rider into a Life insurance policy. However, not all Life Insurance providers offering critical illness additions.

Life insurance policies can be separated into 2 kinds - Term Life and Whole of Life. Term Life policies are mainly for the purpose of covering the risk of unexpected early death of the insured person and therefore provide financial security for the dependant. Whole of Life insurance policies on the other hand include also a cash value saving element after a certain contract time frame. These are usually 10, 15, 20, or more years with a lump sum payed out at the end of the contract. In case the insured event (death of the insured person) occurred before the end of the contract the insured sum will be paid to the beneficiary.

Accident Insurances are no investment instruments. These policies will only cover the financial risk in case an accident occurs and the insured suffers from a loss. However, the product range varies significantly in terms of level of benefits and also depends on the country where the product is listed. International providers usually only provide cover for loss of life and in case of dismemberment, meanwhile in many countries such as within Europe AD&D policies provide generally wider coverage to a certain degree. In addition, some policies also provide a daily hospital benefit for loss of income, which can be very helpful if hospitalized for a week or even longer.

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