Are accidental death and dismemberment policies worth the cost?

It seems like everybody is looking for ways to cut their expenses these days – but should you really consider sacrificing your accidental death and dismemberment (AD&D) policy?

AD&D policies are often purchased as riders to other policies, including life insurance, short-term disability and long-term disability, although they’re sometimes offered through an employer, as well. If you have to pay for your policy and you’re rethinking the cost, here are some of the factors you need to consider when looking at the value of an AD&D policy :

1. How dangerous are your occupation and hobbies?

AD&D policies pay out under a variety of circumstances, not just for work-related injuries, so consider how much potential you have for a serious accident both on the job and in whatever activities you do on your own. If you work in a high-risk industry, like construction, or you engage in hazardous hobbies, like extreme sports or flying, an AD&D policy might be essential.

2. How old are you?

Believe it or not, the younger you are, the more likely you’ll have need of that AD&D policy – because younger people are far more likely to be involved in serious accidents that lead to dismemberment or death than older people. This may be tied to the fact that younger people are more often engaged in jobs and social activities that are physically demanding or dangerous than their older counterparts.

Ultimately, everybody has a different tolerance for their personal risk, but AD&D policies can be a blessing to your family if you’re killed in a covered accident – and they can provide you with an important financial cushion if you suffer the loss of a body part or important function, like your hearing or eyesight.

Unfortunately, claiming the benefits you’re due from an AD&D policy isn’t always as straightforward as you might think, but there is legal help available.