No one likes to think about accidents and the possible effects one could have on you and your family.
However, to entirely ignore such topics is not a wise financial move. It’s your responsibility to make sure there are provisions in place for such events. AD&D insurance (sometimes also referred to as Personal Accident Insurance) is often overlooked for these reasons.
Many people do not know much about AD&D insurance because it is often written as a rider attached to a
larger policy such as a life insurance policy. AD&D insurance provides coverage for deaths caused by accidental means, rather than by natural causes or sickness. This is the “AD” part of the term — accidental death. Dismemberment is the other aspect of these policies. Dismemberment entails the loss of the use of certain body parts such as limbs or eyesight, which could greatly affect your ability to earn an income for your family.
Coverage and Restrictions
In most instances, these types of policies will cover death due to a fatal accident. In some cases there must be proof presented that the death was the direct result of the accident and there must be legal or medical documentation of the accident. This type of insurance will have some restrictions on coverage. Restrictions will vary by policy, but generally death resulting from surgery, suicide, drug overdose, or certain types of risky activities will not be covered.
How AD&D Insurance Can Help
AD&D insurance is helpful in the event of death, because most policies will pay more than is prescribed in an ordinary life insurance policy upon accidental death. The reason for this is because an accidental death is more sudden and therefore more of a financial burden on the family and loved ones. It is also helpful in the event of dismemberment, because your ability to earn an income can be greatly diminished following an injury of that magnitude. Insurance payments can help to care for your family when you cannot.
How to Determine If It’s Right For You
Because accidents can happen to anyone at anytime, Accidental Death & Dismemberment insurance is a great safeguard against the unexpected tragedies of life. This insurance is also a good idea for individuals who have not fully funded their family’s savings plans yet for things such as children’s education and retirement. This way, if those plans are cut short due to accidental death or dismemberment, your family’s future will not be put entirely off-track financially.
AD&D insurance is also highly recommended for individuals who have a job profession that is considered high risk. Those in the police force, fire and rescue, military, or instructors in risky fields. Additionally, if you participate in hobbies that are considered high risk, then this type of insurance is also a safety net for your family, should you be involved in an accident that results in death or dismemberment.
Accidental death and dismemberment insurance could be a crucial part of the future you have envisioned for your family. Don’t ignore this important but affordable insurance. Visit Member Benefits today to learn more about AD&D insurance and to apply for the plan that meets your needs.