Most companies have Accidental Death and Dismemberment Insurance (AD&D) on their group benefit plans but should they? This type of insurance provides benefits for injury resulting in loss, or permanent and total loss of use of body parts. It also pays out a benefit in the event of death caused by accident on or off the job. It’s a benefit over the years that doesn’t cost very much (relative to Life and LTD), and rates have increased nominally for years. There’s a reason why premiums have stayed flat…..because it seldom pays a benefit.
What if you could get the same AD&D benefit, incorporate a critical illness, or serious illness or a cancer rider for approximately the same cost. NO BRAINER, right? So why have so many companies that I talk to not have this value-added feature on their benefits?
Serious illness benefit for plan members may be eligible to receive a tax-free lump sum benefit if they suffer a heart attack, cancer, stroke or kidney failure.
Critical Illness is for plan members who are totally disabled may be eligible to receive a tax-free payout if stricken with several conditions like Parkinson’s, MS, ALS, Alzheimer’s, Huntington’s, Type 1 Diabetes.
Most have not heard of this supercharged Accidental Death and Dismemberment Insurance benefit because it’s a special underwritten benefit and not available as a standard benefit through benefit brokers. It’s a SUPERCHARGED version of AD&D which pays out often and benefits employees when they need it most. Another way of looking at it, it’s a light version of Critical Illness insurance. This benefit costs cents per thousand dollars of coverage and can be a huge financial assistance to someone when they need it most.
Time to rethink why you only have Accidental Death and Dismemberment Insurance coverage on your benefit plan? Yeah, I thought so.