Life Insurance - Do You Know What Type of Policy You Have?
I frequently speak with people who are shopping for term life insurance policies because they just found out the policy they have is not term life insurance. With the many different types of life insurance policies out there you want to make sure you are being quoted for the policy that best fits your needs.
Most of the time what people end up purchasing is known as an Accidental Death and Dismemberment policy. With these types of policies, commonly known as AD&D, you can usually purchase a large amount of insurance for a very low price. The catch is that these AD&D policies are only going to pay out in the event of an accidental death or from dismemberment, which means a person has lost a limb or a portion of a body part, as defined within the policy.
If you have an AD&D policy and pass away other than as the result of an accidental death your beneficiary will not receive the death benefit proceeds. Always check the policy to see if there is a stipulation stating that any premiums paid in may be refunded based on a certain time limit known as a waiting period. For some clients the AD&D policy meets their needs. Some people feel they don’t have a need for a more traditional form of life insurance. Other people have one in addition to their term life or whole life policies for additional protection and because the cost is so affordable.
Everyone has different needs and budgets they are dealing with so as you shop for life insurance it’s important to ask questions, learn about the insurance you are being quoted and if you already have a policy, read it as there are many different types of policies out there. Don’t just purchase a policy because it offers a large amount of coverage for a very low price, ask questions and confirm what type of policy it is.
About the author: Dan Cody has been in the life insurance business for over 7 years. He loves playing a variety of instruments including the guitar, bass, drums, and piano. He also supports cancer research foundations and volunteers at local pet shelters. Dan enjoys helping customers understand life insurance, so they can find a solid policy that fits their needs. You can reach Dan at 1-800-651-1953 or DCody@Pivot.com.