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Does Anyone Ever Read the Fine Print in Life?

With so many types of Life insurance to purchase and so many different companies to choose from, do you really know what riders are included in your Group Term Life insurance? There are unique riders and often-overlooked benefits in life insurance policies, and one of those is Accidental Death and Dismemberment (aka: AD&D). Not such a fun thing to think about, but this is an important rider sometimes included in your life insurance policy and it should be carefully reviewed.

Imagine you’re on vacation far away from home and you are involved in a car accident. Did you know that some policies offer “repatriation”, which could include evacuation to a medical facility, or airlifting you back home? The key to this benefit is that you have to know about it prior to the accident or you may not be reimbursed for your out-of-pocket expenses.  Most people may not have reviewed their policy to see if this rider is offered, and can spend up to $10,000 paying for medical transport home. If you notify the insurance carrier before you use the service, the insurance policy will typically cover the expense if this rider is included.

Did you know your AD&D rider on your life insurance policy also covers loss of hearing, loss sight, or loss of use of limbs as a result of an accident? An unpleasant thought, but at least you may receive some compensation for that loss by having this rider. Most people don’t know that this is an extension of life insurance policies that can really help with expenses if you become disabled. Other AD&D riders may include an amount of money for accidental losses due to chemical exposure, or your disappearance.  Some Life and AD&D policies include an additional percentage of benefit paid out based on the fact that you wore a seatbelt or your vehicle included airbags.

With so many riders and add-on features to life insurance policies, it’s important to thoroughly review the AD&D riders and possible exclusions to coverage (suicide, for example, is typically excluded from AD&D policies). No one wants to think about injuries or loss, but in an emergency, it is comforting to know you may have additional financial help from your Life and AD&D policy. Make sure to take time to review the benefits you have, and review your other coverages periodically to ensure you have what’s best for you.