Accidental Death Life Insurance - Will It Pay?
All too often, in a first-time meeting with a client, we discover that the life insurance that they had in place to protect their family was Accidental Death Life Insurance (AD&D) only. As with most things in life, anything that is too good to be true, almost always is. Generally speaking, all carriers' premiums are within 10% of each other, so when we see a premium that is not inline we know there is an issue. When someone says they have $100,000 worth of coverage for $8 a month and they are 40 years old, it sends up an immediate red flag. These policies aren't necessarily bad due to the inexpensive premiums, but it is an issue when they think they have a full coverage policy and they do not. These are great supplemental plans along with a traditional life insurance product. We will always recommend a full coverage policy with an accidental death rider.
What Is Accidental Death Life Insurance?
These are policies that will only payout the death benefit if the person's death arises as a result of an accident. This is only a problem, if the person's death is due to anything other than an accident and this is the only type of life insurance that the person has.
Policy Review
It's important that you meet with a life insurance agent to review all of your policies to determine exactly what types of policies you have, when or if they will expire and the risk class you were given. It's best to figure out early on that you may not have what you thought you had when it comes to life insurance. Life Insurance premiums are always at their lowest when you are your youngest and in your best heath.
Contact us today to schedule a review to make your your family is protected for years to come!
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