Comments on: Accidental Death & Dismemberment: What’s the Point? http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/ personal finance tips, tricks, and commentary Sat, 21 Nov 2009 18:35:25 -0500 http://wordpress.org/?v=abc hourly 1 By: Um http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/comment-page-1/#comment-135795 Um Wed, 21 Oct 2009 14:37:16 +0000 http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/#comment-135795 Wow Bear you sold insurance for many years? I guess it's typical for someone in sales to know nothing about their product. I came here for answers and found what I normally find in an anonymous Internet message board...rubbish! Foobarista was the only one with a worthwhile comment. Wow Bear you sold insurance for many years? I guess it’s typical for someone in sales to know nothing about their product. I came here for answers and found what I normally find in an anonymous Internet message board…rubbish! Foobarista was the only one with a worthwhile comment.

]]> By: The Bear http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/comment-page-1/#comment-133010 The Bear Wed, 08 Jul 2009 03:12:01 +0000 http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/#comment-133010 From selling insurance for many years, I can say that the reason for AD&D is that by losing two of your vital body parts (between your 2 arms, 2 legs, and 2 eyes, you need to lose 2 of those things in order to collect) you will have additional expenses to pay in order to live a normal life. If you live in a two story house and drive a car, losing your legs will hinder your ability to go upstairs and to drive around. You would need to buy a stair lift and a special car with motorcycle handles. Not to mention, you would have to buy a new, easy access shower and you would have to lower your counter top and shelves in your kitchen. And if you have kids, then you will need more childcare. LTD only replaces your income. So if you could not afford these expenses on your current income, then LTD will not help you pay for them. Why does it have to be an accident? Because if one loses their eyes, arms, or legs due to a sickness, then they are very likely uninsureable. I am not sure about the accidental death. Death by accident is just as costly as death by sickness. Actually, I think death by sickness is more expensive (more medical bills over time, and more time off of work for the survivors). All I can think of is that if somebody had an accident when they lost two limbs and died, then there is no question as to which happened first. If it was death, then loss of limb, then the insurance company may not have to pay. I am not sure about that part, but it is just my take on it. As for AD&D, I think the question may be how much coverage is needed. This, like life insurance, should not be a lottery insurance. If you lost your eyes, arms, or legs, your $100,000 should go to paying for expenses you will incur. I always thought that AD&D should be a rider with LTD or health insurance. From selling insurance for many years, I can say that the reason for AD&D is that by losing two of your vital body parts (between your 2 arms, 2 legs, and 2 eyes, you need to lose 2 of those things in order to collect) you will have additional expenses to pay in order to live a normal life. If you live in a two story house and drive a car, losing your legs will hinder your ability to go upstairs and to drive around. You would need to buy a stair lift and a special car with motorcycle handles. Not to mention, you would have to buy a new, easy access shower and you would have to lower your counter top and shelves in your kitchen. And if you have kids, then you will need more childcare. LTD only replaces your income. So if you could not afford these expenses on your current income, then LTD will not help you pay for them.

Why does it have to be an accident? Because if one loses their eyes, arms, or legs due to a sickness, then they are very likely uninsureable.

I am not sure about the accidental death. Death by accident is just as costly as death by sickness. Actually, I think death by sickness is more expensive (more medical bills over time, and more time off of work for the survivors). All I can think of is that if somebody had an accident when they lost two limbs and died, then there is no question as to which happened first. If it was death, then loss of limb, then the insurance company may not have to pay. I am not sure about that part, but it is just my take on it.

As for AD&D, I think the question may be how much coverage is needed. This, like life insurance, should not be a lottery insurance. If you lost your eyes, arms, or legs, your $100,000 should go to paying for expenses you will incur. I always thought that AD&D should be a rider with LTD or health insurance.

]]> By: kassie http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/comment-page-1/#comment-131780 kassie Fri, 22 May 2009 00:23:46 +0000 http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/#comment-131780 is AD&D considered life insurance??? is AD&D considered life insurance???

]]> By: Fawad http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/comment-page-1/#comment-117858 Fawad Tue, 10 Jun 2008 18:54:22 +0000 http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/#comment-117858 It's very simple: Life insurance amount is payable in the case of your death to your benefeciaries while AD&D is a one time payment payable in case of any accident. It’s very simple: Life insurance amount is payable in the case of your death to your benefeciaries while AD&D is a one time payment payable in case of any accident.

]]> By: nickel http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/comment-page-1/#comment-114490 nickel Thu, 17 Jan 2008 14:45:57 +0000 http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/#comment-114490 Yeah, I guess the only real reason that I opted for it was for the dismemberment option, which is admittedly pretty unlikely. And I haven't cancelled it because, after looking at my LTD policy, it's not actually that good. What I need is a solid, private LTD policy to supplement what I get from work. Yeah, I guess the only real reason that I opted for it was for the dismemberment option, which is admittedly pretty unlikely. And I haven’t cancelled it because, after looking at my LTD policy, it’s not actually that good. What I need is a solid, private LTD policy to supplement what I get from work.

]]> By: LIC http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/comment-page-1/#comment-114487 LIC Thu, 17 Jan 2008 10:58:28 +0000 http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/#comment-114487 Too bad you went for it, nickel. You were right asking yourself "Why do I need to add extra insurance for a special kind of death?" The answer is, you don't. Accidental death insurance makes no sense. This insurance is designed to provide for your family should you be killed in a mishap, such as a car crash or fall. My family doesn't need more money just because I happen to die in an accident. In fact, your family's costs would likely be higher if you were to die from cancer or some other disease, which is a much more common cause of death than accidents. Too bad you went for it, nickel. You were right asking yourself “Why do I need to add extra insurance for a special kind of death?” The answer is, you don’t. Accidental death insurance makes no sense. This insurance is designed to provide for your family should you be killed in a mishap, such as a car crash or fall. My family doesn’t need more money just because I happen to die in an accident. In fact, your family’s costs would likely be higher if you were to die from cancer or some other disease, which is a much more common cause of death than accidents.

]]> By: TD http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/comment-page-1/#comment-99416 TD Fri, 26 Oct 2007 14:03:23 +0000 http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/#comment-99416 AD&D sounds like a money maker for insurance companies..collect $36 a year from 1 million people and you got one hell of a profit. Why..They rarely payout. If you die on the operating table you did not die due to an accident... This is same issue with TERM.. Most people live beyond a term insurance policy. That is why it is so cheap. Sell volumes, less than 10% ever payout because you live beyond the term. The insurance company is betting that you will live. They would not offer it, if it would not make them money. Why take the risk of an AD&D policy being challenged, pay for the life insurance and keep your $36 a year and spend it on yourself. AD&D sounds like a money maker for insurance companies..collect $36 a year from 1 million people and you got one hell of a profit. Why..They rarely payout. If you die on the operating table you did not die due to an accident…

This is same issue with TERM.. Most people live beyond a term insurance policy. That is why it is so cheap. Sell volumes, less than 10% ever payout because you live beyond the term. The insurance company is betting that you will live. They would not offer it, if it would not make them money. Why take the risk of an AD&D policy being challenged, pay for the life insurance and keep your $36 a year and spend it on yourself.

]]> By: MITBeta http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/comment-page-1/#comment-78577 MITBeta Tue, 24 Jul 2007 14:36:36 +0000 http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/#comment-78577 Consider, also, that the vast majority of people do not have individual disability insurance. Many times more people have life insurance than disability insurance even though you're way more likely to be disabled than to die (when young...). So AD&D is often offered as a benefit to employees as a way to get the coverage that they don't realize they need, often at a very affordable price. I would chalk this offer up as a public service but would also suggest that you don't need to waste your money here since you have already covered yourself in this regard. Consider, also, that the vast majority of people do not have individual disability insurance. Many times more people have life insurance than disability insurance even though you’re way more likely to be disabled than to die (when young…). So AD&D is often offered as a benefit to employees as a way to get the coverage that they don’t realize they need, often at a very affordable price. I would chalk this offer up as a public service but would also suggest that you don’t need to waste your money here since you have already covered yourself in this regard.

]]> By: Stickery http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/comment-page-1/#comment-20064 Stickery Fri, 25 Aug 2006 02:24:12 +0000 http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/#comment-20064 Actually I always considered it lotto insurance. It is a long shot gamble, for someone (not you) to make money without much outlay. Likewise it it a money maker for insurance company because the odds are long. If you have financial responsibilities after you kick off - buy the term life you need. Play the lotto if you like, but don't rely on it. stickery ps. hell I have it too... god knows why... Actually I always considered it lotto insurance. It is a long shot gamble, for someone (not you) to make money without much outlay. Likewise it it a money maker for insurance company because the odds are long.

If you have financial responsibilities after you kick off – buy the term life you need. Play the lotto if you like, but don’t rely on it.

stickery

ps. hell I have it too… god knows why…

]]> By: Anon http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/comment-page-1/#comment-18880 Anon Mon, 21 Aug 2006 19:35:53 +0000 http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/#comment-18880 AD&D is for younger people whose most likely cause of death would be some kind of accident. It is substantially cheaper than regular life insurance, and therefore may be an attractive alternative. AD&D is for younger people whose most likely cause of death would be some kind of accident. It is substantially cheaper than regular life insurance, and therefore may be an attractive alternative.

]]> By: Donna http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/comment-page-1/#comment-18856 Donna Mon, 21 Aug 2006 13:58:11 +0000 http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/#comment-18856 Very Seinfeld like observation. Gave me a bit of a chuckle, but then, I started to add it up and, I can't see how else you could get an extra $100,000 of coverage for $36.00 per year. So, it sounds like a great deal -- but, the insurance companies must know something we don't (or maybe it's volume sales) because they are offering this, and, in my experience, insurance companies do not offer products that cost them money. Very Seinfeld like observation. Gave me a bit of a chuckle, but then, I started to add it up and, I can’t see how else you could get an extra $100,000 of coverage for $36.00 per year. So, it sounds like a great deal — but, the insurance companies must know something we don’t (or maybe it’s volume sales) because they are offering this, and, in my experience, insurance companies do not offer products that cost them money.

]]> By: Foobarista http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/comment-page-1/#comment-18786 Foobarista Sun, 20 Aug 2006 07:38:43 +0000 http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/#comment-18786 I always called it "Advanced Dungeons and Dragons" insurance. Sort of appropriate in a way - if you're an AD&D character, you'd want AD&D insurance to deal with those hordes of orcs and other assorted nasties... I always called it “Advanced Dungeons and Dragons” insurance. Sort of appropriate in a way – if you’re an AD&D character, you’d want AD&D insurance to deal with those hordes of orcs and other assorted nasties…

]]> By: Corey http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/comment-page-1/#comment-18748 Corey Sat, 19 Aug 2006 23:22:28 +0000 http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/#comment-18748 "Money can't replace your legs..." Actually, it can to a limited degree and in the future, it'll likely be able to improve the legs you have now. Take a look at the following links to see what I mean. The first is a news story, and the second is a cybernetics company. http://www.temple.edu/ispr/examples/ex04_08_11.html http://www.cyberkineticsinc.com/ By the way, this is a rather interesting blog you've got here. “Money can’t replace your legs…”

Actually, it can to a limited degree and in the future, it’ll likely be able to improve the legs you have now. Take a look at the following links to see what I mean. The first is a news story, and the second is a cybernetics company.

http://www.temple.edu/ispr/exa.....08_11.html
http://www.cyberkineticsinc.com/

By the way, this is a rather interesting blog you’ve got here.

]]> By: Charles http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/comment-page-1/#comment-18344 Charles Fri, 18 Aug 2006 02:09:23 +0000 http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/#comment-18344 A lot of companies will bundle what is an otherwise more expensive insurance into a very low cost, or in my case free, benefit. A lot of companies will bundle what is an otherwise more expensive insurance into a very low cost, or in my case free, benefit.

]]> By: Jeremy Stein http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/comment-page-1/#comment-18170 Jeremy Stein Thu, 17 Aug 2006 14:58:08 +0000 http://www.fivecentnickel.com/2006/08/17/accidental-death-dismemberment-whats-the-point/#comment-18170 I suppose it's to cover the pain and suffering. You buy uninsured/underinsured motorist coverage so that your pain and suffering will be covered even if the guy who hits you can't afford to pay up. While it's great that disability insurance will pay your bills, you've also lost some of the ability to enjoy the rest of life. Money can't replace your legs, but at least you could get titanium wheels for your wheelchair! :) I suppose it’s to cover the pain and suffering. You buy uninsured/underinsured motorist coverage so that your pain and suffering will be covered even if the guy who hits you can’t afford to pay up. While it’s great that disability insurance will pay your bills, you’ve also lost some of the ability to enjoy the rest of life. Money can’t replace your legs, but at least you could get titanium wheels for your wheelchair! :)

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