As your clients are delving into their 2016 taxes, they may also be looking to establish a stronger foothold in their 2017 and beyond. Two ways you can help: accidental death and dismemberment (AD&D) coverage and term life insurance.
Here are few quick points to discuss with your clients about both types of coverage:
1. They may want to consider both types of coverage.
Make sure they are aware that their life insurance needs may not be met by an AD&D policy, as the types of coverage both provide are different.
2. Their term life insurance policies will pay their beneficiaries.
Discuss with them that this type of coverage pays out the amount of their choice to their beneficiaries of their choice within a specific amount of time. Many plans will pay the chosen benefit with few exceptions regarding the cause of death. This type of coverage can range in policy length, and benefit amounts are typically guaranteed to remain the same.
While your clients may be eligible to reapply for life insurance coverage once their terms expire, their rates will likely be higher, especially if they develop certain medical conditions.
3. Their AD&D coverage will pay them or their beneficiaries only in certain instances.
Discuss with them that this type of coverage pays out a certain amount for specific injuries such as losing a body part or losing a sense.
In the case of death that occurs as a direct result to an injury, their beneficiaries will receive full benefits. For example, if a beneficiary can show that a client’s death was caused by an auto accident and that she died within a specific time frame of the accident, the beneficiary will likely be receive the full amount.
Deaths that are caused by high-risk activities such as skydiving and deaths due to suicide, drug overdose, war, among other causes, will likely not be covered by AD&D plans.
To learn more about offering AD&D and life insurance to your clients, please:
- Call 1.877.376.5831 and selecting option 3
- Email email@example.com
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