Accidents can happen at any time, but sometimes, the fallout from an accident can be pretty traumatic. Accidental Death and Dismemberment (AD&D) insurance gives you the added security you need to deal with that fallout. In general terms, an AD&D insurance policy is designed to pay you and/or your family benefits based on whether you die or experience dismemberment due to an accident. In most instances, the policy will pay out within a certain time period after the accident occurs (e.g., 90 days, 24 months, etc.).
Is AD&D Insurance Right for You?
It is important to point out that AD&D Insurance is NOT a replacement for life insurance. Let’s take a look at some advantages and disadvantages of this type of insurance:
- The policies are typically very inexpensive, because the policies do not pay out as often as other types of insurance policies.
- This type of policy is a great way to protect your family from any sudden loss or inability to work.
- It may be useful for people who must retrain for a new career or need to retire due to any type of dismemberment caused by an accident.
- Many times these policies have specific limitations, and only for death or dismemberment caused by an accident. Therefore, the likelihood of payout is small.
- This type of policy is not a life insurance policy and should not be used as a replacement for life insurance. It should be treated as supplemental insurance that may be beneficial to the policy owner.
How many times have you gone to pay for something, and you cannot find your wallet at the bottom of your purse? Do you find it to be a hassle to always have to carry your wallet with you wherever you go? With Apple Pay®, all you need is your iPhone®, Apple Watch® or iPad®, and you’re good to go.
How does it work?
First, load all of your cards (credit cards, debit cards, rewards cards) onto your iPhone by going to the Apple Wallet® app on your phone. You can input the information or simply take a picture of each card. When you go to a merchant who accepts Apple Pay®, you simple pay by holding your iPhone® near the reader at the register. Your default card is automatically used, and with one touch of your finger or with your PIN, your purchase is finalized. No more digging to find your card or carrying all of your cards around with you when you shop, because all your information is in one place.
Is it safe?
Your card information is not stored on your phone. Instead, a Device Account Number is assigned to every transaction you make tying your card to the purchase. This protects your personal information, because it is not accessible. Plus, if your phone is ever lost or stolen, you can use the “Find My iPhone” app to quickly put your device in “lost mode,” which locks or erases the device.
Take a moment to think about what will happen to your loved ones if you are injured and unable to work, or even worse if you pass away unexpectedly. Do you have outstanding loans that could eat up all of your family assets in a short period of time? Who will pay the car payment, the mortgage and other outstanding bills? Consider the following insurance options:
Credit life insurance is used to ensure that any loan with an outstanding balance will be satisfied upon the death of the borrower. It is usually not expensive to pay (usually pennies on the dollar) and can be incorporated into your monthly loan payment.
Disability insurance pays the monthly payment(s) for a loan when the insured is unable to work due to an injury or illness. With disability insurance, you will be able to maintain your current standard of living, no matter what your circumstance may be, rather than devoting any money you receive to making payments on your debt. Much like credit life insurance, the cost of this insurance is minimal and can be included in your loan payment.
Before making the decision to purchase credit life or disability insurance, you should first determine the cost benefit to you and your family. Ask yourself the following:
- Does the cost of the insurance offset the potential cost you or your family will incur without it?
- If you are injured and unable to work for a period of three months, what will your life look like at the end of that time?
The answers to these questions (among others you may think of) will help direct your decision as to whether or not these products are for you. Additionally, you should be careful to shop around for the best insurance product for your needs. Be sure you understand the terms of any policy you purchase, such as what level of disability you need to reach prior to the policy being paid, how long the policy will pay out, what exclusions are in the policy, etc. In some instances, a financial institution will only include credit life or disability insurance in your loan payment if you use the company they suggest. However, it is not mandatory for the insurance purchase as you can pay for it separately.