Is AD&D Insurance Right For You?Health insurance provides valuable service and savings to many people. Though there are literally thousands of variations in the types and quality of insurance offered, the basic principle stays the same; an individual or company pays a monthly premium so that in the event of a health care need, the insurance company will pay all or part of the health care costs. Then, of course, there are deductibles, co-pays, excluded policies, preexisting conditions, etc. which make up the world of insurance. Health insurance is about more than just doctor bills and deductibles. There are also riders that an individual or company can add into a health insurance policy. One such example is accidental death and dismemberment insurance, also known as AD&D insurance. Frequently this is a rider that is added at an additional cost to the individual, so it is up to that person to decide whether AD&D insurance is necessary to add to their current policy. Surprisingly, AD&D insurance is also often available through credit card offers, or as a part of automobile insurance. Much like the name implies, AD&D insurance is an insurance policy that pays the individual in the event of accidental death or dismemberment. For example, as a CNC machinist working in a factory, if you lose your hand in the machines your accidental insurance will pay the amount of money agreed upon in the policy. Different degrees of dismemberment (i.e. a finger, hand, foot, leg, arm, eye, multiple body parts, etc.) will bring a different payment from the insurance company. AD&D insurance is a very limited type of policy. THere are often time limits on the time span allowed between the injury date and the date a claim must be made. In addition, the individual must be able to prove that the death or injury was a direct result of the accident. The real key is to read the fine print in the AD&D insurance policy and decide if it is right for you. Some policies do cover specific types of death or dismemberment, such as flight travel insurance and diving accident insurance. Of course, some types of risky behavior such as sky diving or bungee jumping may be excluded in your AD&D insurance policy. If you are an individual with "Cadillac" insurance, with low premiums and deductibles and solid coverage, and/or if you have a life insurance policy which covers accidental death and dismemberment, you may not need this kind of coverage. However, if you have insurance that does not have maximum coverage, this low cost insurance might be just right. It's a matter of knowing what you need and being sure to read the fine print. |