When you want to protect yourself and your family, adding accidental death and dismemberment insurance is a sound investment.
With accidental death and dismemberment policyholders and their loved ones will have peace of mind if there’s a disabling injury. If you were to die, the insurance would provide a financial cushion for your heirs.
Accidental Death and Dismemberment Insurance Explained
This insurance product is usually added as a rider to a life insurance or health insurance policy. It includes a schedule of benefits that kick in if there is an accident that results in loss of certain functions or death.
Dismemberment usually includes loss of or the loss of use of body parts or functions, including limbs, partial or full paralysis, speech, hearing and eyesight. Accidental deaths may include traffic accidents, natural disasters, exposure to the elements, drowning, falls, homicide, or heavy-equipment accidents.
The policyholder designates beneficiaries who would receive the benefits if the policy is needed. Often the benefits are capped. There are also certain inclusions written in to these policies where benefits are not paid, including casualties from:
- Military duty
- Death from illness or natural causes
- Overdoses of toxic or poisonous substances
- Overdoses of nonprescription drugs
- Injuries or deaths of professional athletes while competing
Types of Accidental Death and Dismemberment Plans
There are four basic types of these policies:
- Group life. Benefits are provided as part of a group life contract, such as those issued by employers, trade unions or membership organizations
- Travel accident. Accident protection may be an offered (often automatic) employee benefit that protects workers traveling on official business with premiums paid by the employer
- Voluntary. Some group life contracts offer the benefit as an elective benefit paid by the employee
- Dependents. Some plans provide optional coverage for dependents
Where to Buy Accidental Death and Dismemberment Insurance
Palmetto Citizens Federal Credit Union offers accidental death and dismemberment and other insurance products to protect you and your family. Contact us to learn more about our range of financial products.