Do I Need Both Life Insurance and AD&D Insurance?

life insurance or ad and d insurance - everyday life insurance

When it comes to financial protection, life insurance is a crucial foundation. It provides a safety net for your loved ones in the event of your death, ensuring they have the financial resources they need to maintain their standard of living. While Accidental Death and Dismemberment (AD&D) insurance can offer additional coverage for accidental incidents, it’s typically not necessary for those who already have life insurance.

What is Life Insurance?

Life insurance is designed to replace your income in the event of your death, providing a financial cushion for your loved ones. The two most common types of life insurance are::

  • Term life insurance: Provides coverage for a specific term (usually 10, 20, or 30 years). If you pass away during the term, the insurance company pays out the death benefit. If you outlive the term, the policy typically expires with no cash value.
  • Whole life insurance: Offers lifetime coverage, with the potential to build cash value over time. Premiums are generally much higher for this type of life insurance.

What is AD&D Insurance?

Accidental Death and Dismemberment (AD&D) insurance is a type of supplemental insurance that provides a payout if you die or suffer a loss of limb or bodily function due to an accident. If this sounds awfully similar to life insurance, remember this: life insurance covers death from any cause, while AD&D only covers accidents.

AD&D can be a valuable backup if you’re unable to get approved for life insurance. However, it has its limitations:

  • Natural causes excluded: AD&D does not cover death or injuries resulting from illnesses, diseases, or non-accidental causes.
  • Limited payout: AD&D may only pay out a portion of the benefit immediately, with the rest paid out over time.

Who Should Consider AD&D Insurance?

Everyone’s situation is different. But typically, AD&D insurance is ideal for those who are being denied life insurance. A person might be denied life insurance due to health concerns, lifestyle factors, legal issues, or other risk factors.

In this situation, AD&D insurance can be a useful alternative. If you have a family that depends on you but you’re unable to qualify for life insurance, AD&D insurance can provide support. If you have a high-risk job and want some extra financial protection in the event of an accident, this can also be a great tool.

Getting Life Insurance After Being Denied

If you’re considering AD&D insurance because you’ve been denied life insurance in the past, we encourage you to try our life insurance calculator before making any purchases. Even if you’ve been denied or feel you won’t qualify, there are usually some options available to you. We’ve had great success with finding the right life insurance policy for individuals who don’t typically qualify. A life insurance or AD&D policy is something you’ll be tied to for years to come, take a moment to make sure it’s the best one for you before signing anything.

Our online calculator is free, totally anonymous, and won’t affect any future life insurance inquiries. Give it a try.

Finding The Right Policy For You

If possible, life insurance should be the cornerstone of your financial protection plan. But AD&D insurance can provide a valuable backup when that’s not an option or if you’re looking to cover for added risks.

But how much coverage do you need? This varies greatly from person to person. It mostly comes down to your financial obligations, current budget, and what kind of premiums you can afford.Try our online life insurance calculator for a customized answer.

Disclaimer: The comments, opinions, and analyses expressed at Everyday Life are for informational purposes only and should not be considered individual investment, legal or tax advice.

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