An Accidental Death Benefit – Should I Add It To My Life Insurance

UnCategorized People often wonder if it would be worthwhile to add an accidental death benefit to their insurance policy because it’s such an inexpensive option. Like most other things, although the answer might seem obvious it can’t really be answered directly with a "yes" or a "no". There are a number of things to consider. Adding an accidental death benefit will usually pay if the insured dies within 90 to 180 days of having an accident. The time frame varies according to where you live. Since the premiums are very inexpensive, it would make sense on the surface. However, the terms in most accidental death and dismemberment polices are rather restrictive. In addition to there being a time factor, the insurer won’t necessarily issue the rider if there is a distinct risk of the insured actually dying in an accident. For example, if you are a bungee jumper instructor who demonstrates jumping several times a week and in your spare time you enjoy scuba diving and rock climbing, don’t hold your breath waiting for the insurance company to approve you. Also, you will want to make sure that you’re not underinsured in general. If you need $1,000,000 in life insurance, I hope you’re not in the situation where you have a $500,000 policy and then are looking to add another half a million dollars in accidental death. If you feel you need a million dollars in life insurance you should have a million dollars in life insurance. On the other hand, if you only needed half a million dollars in coverage to protect your family, why would you spend the extra money for the AD&D rider for your beneficiary in order to get an additional $500,000 just because you died by accident? With all of that being said, accidental deaths are the leading cause of death for people under 35 years of age and actually account for 5% of all deaths in the United States. And, if you are involved in an accident, there may be additional expenses involved. Although this is an extreme example, supposing you had to be maintained on life support in a critical care unit for several weeks before you died. The hospital bill will probably be hundreds of thousands of dollars. Therefore, because the cost of the rider is so reasonable, you should not automatically discount it if you would be approved by your carrier. About the Author: 相关的主题文章: