I’ve spent the last couple of days poring over my benefits options for my new job. Choose a health plan, decide on dental coverage, pick a retirement plan, opt for optional group life coverage, etc. That’s all well and good, but I couldn’t help but shake my head when I looked at the brochure for the optional Accidental Death and Dismemberment policy. I just don’t get it (even though I ended up opting for it).
I have life insurance to protect my family if I die, and I have long-term disability (LTD) insurance in case I suffer a debilitating injury or illness. So why do I need to add extra insurance for a special kind of death? You wouldn’t buy death-by-heart-attack insurance, would you? Or death by choking on a meatball insurance? Although that would arguably fall under ‘accidental’ — but I digress. And why do I need to insure my limbs? Sure, it would suck if I lost a limb (or an eye, which is also covered in most cases). But insure it? What’s the point?
If I have a debilitating injury, I’ll be covered by my LTD policy (plus worker’s comp if it happens on the job). While there might be circumstances under which these policies make sense (e.g., high-risk jobs or hobbies), I just can’t figure out why this sort of coverage is necessary. Sure, high-risk jobs or dangerous hobbies might be a good justification, but these sorts of things often make you ineligible for AD&D coverage.
Despite all this, I have to admit that I still went for it… I’m not sure why, but at just $2.80/month for $100k in coverage for myself and my family, I figured it really couldn’t hurt.