Posted: 11/14/2011 4:31:15 PM EDT
|
My employer offers a pretty huge amount of life insurance, in both group term life and AD&D.
If payouts are the as high as one would want, and the monthly fee is appropriate. Does it make sense to have both? Or is term life everything AD&D offers, and more? Is there any reason at all to have the AD&D if you have a very sizable term life? |
|
There's a number of things to look at when you buy any type of life (or dismemberment) insurance.The first is your own personal situation, e.g. your age, your health, and the number of people that would be affected if your income would need to be replaced at your death (wife, kids (and their college funding, if that's part of the family plan). I'd also consider your profession. An actuary can plan on a relatively safe working environment with few risks, a construction worker's work day would be considerably riskier.
AD&D usually comes with a lot of conditions and exclusions, so it's generally not a real great deal. That said, if it were cheap enough and my profession was fairly risky, I'd probably get it. For most people, it's not worth it. As usual, YMMV and everyone's personal situation is different. |
|
Generally speaking, life insurance pays out for 'loss of life'. AD&D pays out for 'accidents', when they result in either death or dismemberment. Both can have lots of exclusions, riders, etc. To advise you well, a person would need to both be licensed in your state and know a lot of personal information about you and your family. |