I understand a little about how AD&D works (for example, if you lose a leg you get x% of your benefit), but who is it for? If I have Life and Medical Insurance, am a white collar worker, and do not engage in dangerous hobbies, why would I need it? By the same token, why not get AD&D instead of Life insurance (since the AD&D plan I looked at had a death benefit)? AD&D seems like a waste of money (of course I've just jinxed myself). Can someone please enlighten me?...
2006-12-04 05:37:35 · 14 answers · asked by Michael T 2 in Business & Finance ➔ Insurance
I'd have to agree that AD&D is insurance that you don't need to have. It's low risk to the insurer, which is why they offer it at low cost (usually).
If you have ample life insurance (term is your best buy, as has been suggested) and good disability insurance, you are in good shape. If you don' t have these two insurances, AD&D is not going to give you sufficient coverage -- and you need to get them.
2006-12-04 07:10:16 · answer #1 · answered by MoniqueLise 3 · 0⤊ 0⤋
AD&D (accidental death and dismemberment) pays you if you lose a limb or two in an accident, and pays your beneficiary if you are killed in an accident. Life insurance only pays your beneficiary when you die, but it can be from almost any cause, even suicide in some jurisdictions after a certain time period like two years. One of the main purposes of life or AD&D is to replace the income you would have earned if you hadn't died. If you have no one depending on you for support, there is less need for the insurance, although some people who can afford it buy the insurance and name their parents as beneficiaries.
Some kinds of life insurance have an investment value that you can cash in later while you are still alive. This is called "whole life". The kind that just has an insurance payout on your death is usually called "term insurance".
2006-12-04 06:27:04 · answer #2 · answered by dura mater 2 · 1⤊ 0⤋
Life insurance provides a lump sum of money to beneficiaries upon death of the insured. It is intended to replace the deceased's loss of current and some future income. Whether the insured dies of natural or accidental causes, his/her beneficiaries will receive lump payments. Whether or not to purchase life insurance, and how much, is a personal choice based on what the person is trying to protect. Life insurance can help:
* replace the loss of future income;
* provide the ability for a spouse/partner to keep a home;
* allow a surviving partner to raise and educate children;
* provide income to assist an elder who relies on family for day to day support.
Unlike whole life insurance, term insurance has no cash value.
AD&D Insurance
Accidental Death and Dismemberment (AD&D) insurance provides a lump sum payment if death or dismemberment is the direct result of an accident. If the insured has both life and AD&D insurance and dies as the result of an accident, both coverages are paid to designated beneficiaries. An employee enrolled in AD&D insurance who becomes dismembered as a result of an accident will be the beneficiary of the claim. The employee is also the beneficiary for any dependent claims. AD&D coverage never requires proof of good health, and can be added or dropped at any time.
AD&D insurance has no cash value.
Try getting an instant quote below. Policies start at as little as $3 per month.
Life Quotes: http://www.insureme.com/landing.aspx?Refby=615159&Type=life
Take care,
Ron @ InsureMe
2006-12-04 23:01:30 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Get life insurance: level term- it's cheap and pays if you die. Whether it's via an accident or natural causes. Don't get whole life, variable life and any other insurance that tries to insur you and invest for you as well.
Get disability insurance: That way if you are disabled due to the loss of a limb if you are then listed as disable.
I stay way from special circumstances insurance. the special circumstances rarely happen and you can get the same coverage with better rates with those two insurances listed above.
Oh yeah, don't forget medical insurance. Of course, that goes without saying.
2006-12-04 06:50:55 · answer #4 · answered by ontopofoldsmokie 6 · 1⤊ 0⤋
I might suggest that you visit this internet site where onel can compare rates from the best companies: http://insurancetocompare.info/index.html?src=2YAuik4eO7d
RE :How does AD&D Insurance differ from Life Insurance?
I understand a little about how AD&D works (for example, if you lose a leg you get x% of your benefit), but who is it for? If I have Life and Medical Insurance, am a white collar worker, and do not engage in dangerous hobbies, why would I need it? By the same token, why not get AD&D instead of Life insurance (since the AD&D plan I looked at had a death benefit)? AD&D seems like a waste of money (of course I've just jinxed myself). Can someone please enlighten me?...
Follow 14 answers
2016-11-09 07:39:26 · answer #5 · answered by ? 6 · 0⤊ 0⤋
If you already have life insurance, AD&D is redundant.
AD&D pays only if you die as a result of an accident. And very often only if your death is within one year of the accident and the accident is the "proximate cause" of your demise. (So complications don't count!)
Regular life insurance pays regardless of the cause. After a policy has been in force for at least 2 years, it even pays for suicide.
2006-12-04 12:42:32 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Example: Say you go on vacation. Your in a car wreck, you die.
Regular life insurance pays regardless of cause of death, other
than limitations for suicide. AD&D pays if your death is the result of any type of unnatural incident. Usually there is a double indem-
nity with regular life insurance, though. But, if you can afford it, there no such thing as being to prepared for the worst.
2006-12-04 05:51:59 · answer #7 · answered by IAM2INSANE 5 · 0⤊ 0⤋
AD&D pays for specific accidents. You are better off with a Disability Insurance policy which will pay a percentage of your salary. You can get this cheaply through work.
2006-12-04 16:00:45 · answer #8 · answered by Steve R 6 · 0⤊ 0⤋
AD&D simply isn't worth the premiums you'd pay.
Most people don't die of accidental causes, so the only real value of AD&D is if you lose a limb, eye, etc. But, what are the odds of that happening.
Calculate the odds of you losing a limb (very low) and the odds of you dying accidentally (also very low) versus the odds of you dying (very, very high) and you'll see it is much better to buy a policy that you know will pay out for certain.
2006-12-04 13:01:44 · answer #9 · answered by markmywordz 5 · 1⤊ 0⤋
Accident insurance is good for people that do not have an emergency fund. If you have atleast 4 months of income saved up for emergency than you do not need this type of policy.
2006-12-04 06:03:09 · answer #10 · answered by Anonymous · 1⤊ 0⤋