Is AD&D insurance worth having ?

Archived From: Finance
  • Page :
  • 1
  • Text Only
Voting History
rated:
Hi,

As I'm kind of a newbie in the field of insurances, I'm wondering if accidental death insurance is worth getting (maybe as an addition to term life) ? Could anyone tell me which (maybe online-insurance companies provide the best value and what to consider ?

I already found some general explanations on https://answers.yahoo.com/question/index?qid=20160412164435AAOHS... and http://death-insurance.com/add-insurance-worth-having/ but I'm still none the wiser if I really should get it.



Thanks in advance !

Member Summary
Most Recent Posts
Just make sure it covers being "accidentally" shot by law enforcement. #HandsUpDontShoot

RidicuRuss (Sep. 29, 2016 @ 10:34a) |

Just don't be black

alamo11 (Sep. 29, 2016 @ 11:17a) |

OP asked if HE should get it. He should have asked if his BENEFICIARY should get it then.

atikovi (Sep. 29, 2016 @ 6:43p) |

Staff Summary
  • Also categorized in:
Thanks for visiting FatWallet.com. Join for free to remove this ad.

I have it with work, most of the larger companies have it for like a few bucks a month but if you are not at a company that offers it, I wonder what others thoughts are.

Most work comes with it because companies like you to have some $ when you get injured so as not to use them. While cheap, I don't see how it makes sense. I would the extra $ toward life instead if you have to pay it yourself.

Younger people are more likely to die from accident than from disease.  If you have dependents that rely on your income, it's a very cheap form of life insurance.

A lot of the options out there are big money makers for companies because the rates are so low..but the chance of dying in a covered accident are even lower, but some people get suckered in by the low rates.

figure out how much life insurance you need and buy a term policy for that amount, so that if you die for whatever cause, you are ok.

of course if a company truly subsidizes it to a great extent then maybe its worth it, but genreally not on the open marketplace.

Assuming you don't die, not having it could cost you an arm or a leg.

lonestarguy said:   Assuming you don't die, not having it could cost you an arm or a leg.
  Having it (and using it) would also likely cost you an arm or a leg.

Horrible purchase. Use the money to increase coverage of term life insurance in case you die prematurely from any cause.

I looked at it just a few momths ago and the pricing seemed horrible. I decided to accept continuation offer after I left my work. I recall it being only like $20ish per month for 1M coverage.

Not sure how they pay you once you die.

The accidental death part of it doesnt make much sense to me. Your need for life insurance shouldnt depend on the nature of death (accidental vs due to any cause). If you really do need life insurance, do get an appropriate term policy.

The "dismemberment" part of AD&D might have some value. But, in general, that is better covered by a good disability policy. Granted, a disability policy would cost you much more than an AD&D policy (and will provide different coverage, obviously).

i get half million for $20 per month . i think it's reasonable if you are healthy and under 50 .

Stop---don't buy accidental death insurance!

1) If your dependents/others will be impacted by your loss of life...get regular life insurance as that is the most appropriate coverage. The impact of the loss of one's life isn't worth any less/more relative to the circumstances of the death. Keep it simple...the more obtuse the insurance...the less real value it likely has.
2) Accidental death insurance is double coverage if you already have life insurance. Instead purchase the proper amount of life insurance.
3) I suspect accidental death insurance is so cheap as the payout rates are low and thus easy to bump up to increase profits. Personally, I'm hard pressed to identify anyone I personally know who has died due to an accident. Investopedia (http://www.investopedia.com/ask/answers/09/accidental-life-insur... presses on the multiple loopholes in accidental death policies.

loganj said:   Stop---don't buy accidental death insurance!

2) Accidental death insurance is double coverage if you already have life insurance. Instead purchase the proper amount of life insurance.

 

  
 Accidental death insurance is much cheaper than life insurance. If you are young, you are much more likely to die from an accident, so why wouldn't you increase your accidental death insurance and decrease your life insurance? 

atikovi said:   Not sure how they pay you once you die.
They pay your beneficiary. If you don't have one, it goes to the estate. You don't want to take to go to estate always provide a beneficiary.

avalon6 said:   
loganj said:   Stop---don't buy accidental death insurance!

2) Accidental death insurance is double coverage if you already have life insurance. Instead purchase the proper amount of life insurance.

 

  
 Accidental death insurance is much cheaper than life insurance. If you are young, you are much more likely to die from an accident, so why wouldn't you increase your accidental death insurance and decrease your life insurance? 

Life insurance (death benefit) is to take care of the financial needs of your beneficiary in case of your untimely death. That need is usually independent of the cause of death. Life insurance is not a lottery ticket for the beneficiaries.

The insurance companies have lot more data for your demographic (age, gender etc.). The rates are commensurate with the risk it is insuring against.

fwuser12 said:   The insurance companies have lot more data for your demographic (age, gender etc.). The rates are commensurate with the risk it is insuring against.
  
Not true at all. Look at what happened to Genworth's and Metlife's stock price because of their LTC policies. 

avalon6 said:   
fwuser12 said:   The insurance companies have lot more data for your demographic (age, gender etc.). The rates are commensurate with the risk it is insuring against.
  
Not true at all. Look at what happened to Genworth's and Metlife's stock price because of their LTC policies. 

One anomaly does not imply every other insurance product out there has been mispriced for its risk. More importantly, it also does not necessarily mean you have the means/data to understand the mispricing assuming it exists.

fwuser12 said:   
avalon6 said:   
fwuser12 said:   The insurance companies have lot more data for your demographic (age, gender etc.). The rates are commensurate with the risk it is insuring against.
  
Not true at all. Look at what happened to Genworth's and Metlife's stock price because of their LTC policies. 

One anomaly does not imply every other insurance product out there has been mispriced for its risk. More importantly, it also does not necessarily mean you have the means/data to understand the mispricing assuming it exists.

  
How can you say it is an anomaly? Inflation plays a big part in the insurance company's calculations. They flat out overestimated how much inflation there would be. 

avalon6 said:     How can you say it is an anomaly? Inflation plays a big part in the insurance company's calculations. They flat out overestimated how much inflation there would be. 
 

  What has that got to do with AD&D?

People who keep posting about how much cheaper it is then term life insurance don't understand that it's cheaper bc it's very very unlikely to pay. The exclusions on these make it so. There isn't any magic in this world. So if you think it's a cheaper form of insurance then you are mistaken.

avalon6 said:   fwuser12 said:   The insurance companies have lot more data for your demographic (age, gender etc.). The rates are commensurate with the risk it is insuring against.
  
Not true at all. Look at what happened to Genworth's and Metlife's stock price because of their LTC policies. 


They didn't have good data for ltc claims. They have a lot of data for life expectancy. They just aren't similar products.

Do you encounter that many Orcs?

ganda said:   Do you encounter that many Orcs?
  I would be one of the funny people around here if you didn't always get to it first! 

Advanced Dungeons & Dragons insurance? What would that be?!

Accidental Death & Dismemberment? No. Either you don't need insurance and shouldn't waste your money, or you do need insurance and you should have proper insurance that's not restricted by the peril that caused the problem.

1. Accidental deaths are only about 5% of all fatalities. I don't see rates for dismemberment but I can't immagine it happens all that much more. And when it does the financial impact isn't the same. AD&D insurance should be much much cheaper than general term life insurance.

2. thanks Ganda, I was waiting for that.

Let's look at some numbers.  Below figures are from CDC. All races, both sexes, 25-34 years old: percent of total deaths, 2014. Takeaway: IF you die in this age group, only 40% chance it will from disease.
http://www.cdc.gov/nchs/data/dvs/lcwk2_2014.pdf (page 3)


1 Accidents (unintentional injuries)  36.8
2 Intentional self-harm (suicide) 13.9
3 Assault (homicide)  8.8
4 Malignant neoplasms 7.7 
 

millervtranger said:   A lot of the options out there are big money makers for companies because the rates are so low..but the chance of dying in a covered accident are even lower, but some people get suckered in by the low rates.

figure out how much life insurance you need and buy a term policy for that amount, so that if you die for whatever cause, you are ok.

of course if a company truly subsidizes it to a great extent then maybe its worth it, but genreally not on the open marketplace.
 

  THIS!  AD&D Insurance is a scam for the Insurance Co. to make more $$

superfreak78 said:     THIS!  AD&D Insurance is a scam for the Insurance Co. to make more $$
 Technically all insurance products exist to make the insurance company more money

Just make sure it covers being "accidentally" shot by law enforcement. #HandsUpDontShoot

RidicuRuss said:   Just make sure it covers being "accidentally" shot by law enforcement. #HandsUpDontShoot
  Just don't be black

anathemax said:   I'm still none the wiser if I really should get it.
  
scrouds said:   
atikovi said:   Not sure how they pay you once you die.
They pay your beneficiary. If you don't have one, it goes to the estate. You don't want to take to go to estate always provide a beneficiary.

  OP asked if HE should get it. He should have asked if his BENEFICIARY should get it then.



Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017