Purchasing insurance coverage against the a person’s death or loss of abilities is seldom a simple process, and a variety of unexpected factors might arise only when filing a life insurance or disability insurance policy claim. While one remedy for many policyholders might be a bad faith insurance claim, acquiring a comprehensive understanding of policy limits in advance is always a sound strategy.
One type of insurance that is often available through employment plans and other sources is accidental death and dismemberment (AD&D) insurance. These policies, which generally appear to be very affordable, pay in full to beneficiaries if the person with coverage dies due to an accident and pay a partial benefit to an injury victim who loses a limb or suffers other specified harm such as blindness or hearing loss.
AD&D insurance is only applicable to situations involving an accident that causes death or serious injury. The primary purpose behind these policies is to help survivors in the aftermath of a tragic event that no one expected or prepared for.
However, on balance, consumers should realize that the likelihood of a deadly accident is much lower than adverse health events such as heart attack or cancer that result in death or disability. They should also keep in mind that a fatal car accident caused by an adverse health event such as a seizure would not be trigger AD&D coverage, but would fall under the circumstances covered by a life insurance policy.
For that reason, smart financial planning suggests that individuals should consider AD&D coverage only as a supplement to sound life insurance and disability insurance coverage. These policies generally cover the loss and provide benefits whether the harm resulted from an accident or a long list of other causes.
Many financial advisers counsel clients that dedicating premiums that would go to an AD&D policy to life or disability coverage instead makes much more sense. Nonetheless, ease of acquisition and the perception of a bargain lead many people in Florida to acquire AD&D coverage.
Taking Action When an Insurance Company Does Not Live up to Its End of the Bargain
Like any type of insurance against loss, from general homeowners and commercial policies to specific protection against damage from hurricanes, fire, mold or lightning, AD&D policies are subject to consumer protections that provide legal rights to policyholders and beneficiaries. A bad faith insurance lawyer can explain remedies against an insurance company that wrongfully denies benefits, delays payments, fails to investigate a claim or misinterprets policy terms to its own benefit.
Article provided by Corless Associates
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