Explaining Accidental Death Coverage

There are 5 segments in the Risk Ratio that you would need to understand. Each segment provide different insights on different situation that may happen and how their current Insurance Portfolio will be able to help them.

Understanding each line is crucial to help your client in building their Financial protection.

Here we will go through the items in Accidental Death Coverage:

1. Accidental Death to Total Funding (DTF)
   –  Upon insured death, as the total Death Benefit + Personal Accident Benefit + Accidental Death Benefit paid out by the insurance company to the beneficiary (assuming all beneficiary have the same goal),
   – the Beneficiary pays off ALL the Outstanding Loan (without MRTA) of the insured
   – the balance amount of the Benefit can be used to sustain the beneficiary for N month (calculated with continuous compounding future value with the adjusted interest rate)
2. Accidental Death to Basic Funding (DBF)
   –  Upon insured death, as the total Death Benefit + Personal Accident Benefit + Accidental Death benefit paid out by the insurance company to the beneficiary (assuming all beneficiary have the same goal),
   – the Beneficiary pays off ONLY the Outstanding Loan for Mortgage of Own Home (without MRTA) of the insured.
   – the balance amount of the Benefit can be used to sustain the beneficiary for N month (calculated with continuous compounding future value with the adjusted interest rate)
3. Accidental Death to Unsettled Funding (DUF)
   –  Upon insured death, as the total Death Benefit + Personal Accidental Benefit + Accidental Death Benefit paid out by the insurance company to the beneficiary (assuming all beneficiary have the same goal),
   – the Beneficiary pays off NONE the Outstanding Loan of the insured.
   – the balance amount of the Benefit can be used to sustain the beneficiary for N month (calculated with continuous compounding future value with the adjusted interest rate)
4.  Accidental Total Insurance Funding Solution
   – Percentage of funding needs considering all properties mortgage being solved by using insurance funding
5.  Accidental Basic Insurance Funding Solution
   – Percentage of funding needs considering home mortgage only being solved by using insurance funding