Does it pay to add accidental death benefit?

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PostPosted: Wed May 20, 2009 3:36 am   Post subject:   

Life expectancy is an average, not a median. Take the average age at which people die from the entire population and you arrive that that number 78.

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PostPosted: Thu May 21, 2009 12:50 am   Post subject:   

I AM WRONG!



dgoldenz, thanks for the correct information.





Quote:
By proxy, that means half of the general population lives past age 78...so is 50% of our population aged 78 or older?




Your quote using the correct information would be,
Quote:
"By proxy that means that the average age of death is 78...so is our average citizen 78 today?"




The answer is, of course, "no". The easy explanation is that if the average age was currently 78, life expectancy would only be 78 if everyone was going to die today. Otherwise, life expectancy would obviously be more.
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PostPosted: Thu May 21, 2009 6:10 am   Post subject:   

Quote:
Just as an 'example'...someone killed in war, even if it's friendly fire, which most certainly would be an accident. May be excluded...or riot, civil unrest, in the comission of a felony, etc. All policys lay out what 'is' and is 'not' considered an accident.




It would then surely be an interesting thing to know.



JT Insure,



Quote:
If you are in a dangerous line of work, then that will just drive up the premiums anyway.




May be that's the reason what makes it more sensible to them to add the AD&D rider. When your job can increase the expense of your life insurance which you may or may not be able to pay; AD&D would help you in receiving double coverage at the cost of one.



Thanks,

Rupert
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PostPosted: Wed Aug 19, 2009 7:57 pm   Post subject: tell you why it makes sense  

In the event of a death that is "not accidental" such as due to cancer, heart disease, etc... the person insured would be more likely to have financially prepared for death. Especially in the case in which the person is terminally ill with greater than one year to live. The point is, when accidents do occur, no planning has typically been done (especially if the person was otherwise healthy). The cost to treat a person due to accident can be astronomical, that cost in addition to typical costs of death would need to be considered. If I have to pay medical bills, autopsies, and funeral expenses it would likely cost me much more than to bury my grandmother that had been ill for years and paying her own bills (had medicaid paying them, etc). Additionally, when death is evident either due to age or condition, that person's beneficieries would have likely been cared for differently. Homes and titles transferred, valubles divided, etc... decreasing the needs of any left behind dependents, also decreasing the need for an attorney to divide an estate. In an accidental death, there is less likely to be a will, and everything is left up in the air- it costs to sort through it. Why not pay a few extra cents to ensure that no extra financial burden is left? And many people do buy lottery tickets weekly simply because they are cheap. Difference is, your chances at accidental death are much greater than those of winning the lottery.


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PostPosted: Wed Aug 19, 2009 8:08 pm   Post subject:   

Quote:
Why not pay a few extra cents to ensure that no extra financial burden is left?




Assuming that everything that you said in your post is true, the same can be said for someone who is healthy and drops dead of a heart attack.



If the insurance is needed, it is needed. It makes much more sense to buy a policy that will pay regardless of how death occurs.
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PostPosted: Wed Aug 19, 2009 10:18 pm   Post subject:   

Quote:
Insurance data and mortality tables tell us that the average life expectancy is about age 78. So, it just makes sense that if a person dies before the age of 78, there is a high probability that the death will be the result of an accident.




Staggering fact: 40% of all the life insurance sold in America since 1983 will not perform as sold and will therefore never benefit anyone but the agent and the company. So I guess if you're going to die, do so quickly and have an accidental death policy.


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PostPosted: Wed Aug 19, 2009 10:57 pm   Post subject:   

Mark, what do you mean by your last statement? Are you simply saying that 40% of all policies will lapse? Or are you saying something different?



My guess would be that a much higher % than 40 would lapse.



Considering that all policies have a guaranteed premium and a guaranteed death benefit, it's hard to understand how they won't perform as sold. It seems to me that they will perform exactly as sold or better.

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PostPosted: Thu Aug 20, 2009 12:41 am   Post subject:   

I'm sorry, that statement was more of a "shot fired" at the dishonest side of the industry. To be more specific; 40% of all life insurance sold since 1983 has had its terms and conditions misrepresented by agents and thus will not perform as sold. In far too many cases, life insurance policies self-destruct before a claim can be paid. Those are the cases I've investigated for 16 years



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PostPosted: Thu Aug 20, 2009 1:04 am   Post subject:   

Wow, that's some real shoddy life insurance selling.



Are you primarily referring to agents selling based upon illustrations and the reality not living up to the illustrations?

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PostPosted: Thu Aug 20, 2009 3:42 am   Post subject:   

Somehow that doesn't surprise me....there's an awful lot of agents out there who don't know what they're doing and won't be around long enough to care about the consequences.

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PostPosted: Thu Aug 20, 2009 2:09 pm   Post subject:   

Quote:
Somehow that doesn't surprise me....there's an awful lot of agents out there who don't know what they're doing and won't be around long enough to care about the consequences.




This is exactly right.


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PostPosted: Tue Sep 15, 2009 2:06 am   Post subject: Accidental Death Riders  

That's the problem. Most of the companies that issue A.D.D. KNOW that they are ADDing to their pockets and will NEVER pay the proceeds on A.D.D. You must read the policy or get someone to help you understand it. EVERY policy has a required way you must die before they will pay proceeds. Don't be tricked. Know what you are getting. A.D.D. is cheap for a reason.


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PostPosted: Tue Sep 15, 2009 5:10 am   Post subject: ADB  

I always add accidental death to a policy.Unless the client specifically says they don't want it. The extra premium is very low. It is a rider.Most of the time the benefit will end at a certain age. Also some companys will pay the face amt. of the policy first and request additional info. about the accident before paying the ADB.I don't beleive it has a contestability period. Hope this answered your question.

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PostPosted: Thu Sep 17, 2009 9:48 am   Post subject:   

Hi agent07,



I'm sure the ADB is something truly helpful in the event we meet with an accidental death. But then you should explain everything regarding the benefits to your customers. Many times the clauses are so inexplicable that the customer keeps guessing about the benefits and the tenure of the benefits.

Quote:
Most of the time the benefit will end at a certain age.


When does this benefit end with most policies?



Steven
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PostPosted: Fri Oct 02, 2009 9:08 pm   Post subject: adb  

Yes, it is always wise to add adb to a life policy. It is very inexpensive. But remember, the 2 year contestability period does not apply to adb. It can always be contested.I always add it.(most of time)

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