Accidental Death Insurance
One of the things we do for people is an insurance portfolio review.
A recent review I did for a person has me a bit more disturbed than most. This person has a family and is the majority breadwinner in their home. They felt fairly comfortable that they had some insurance and that bills would be paid if they were to pass away.
I looked at their insurance policy, actually two of them which had been sold to them at two different times, and saw that they were both for what is called ‘accidental death’. Accidental death is attributed to 4.7% of deaths in Canada (2017 Statscan) and that is the only thing that this person was covered for. Not if they died of cancer. Not if they died of a stroke. Not if they had a heart attack and died. Only if they die in an accident. But wait! There is a little list of other exclusions as well. Other exclusions are:
- Due to medical surgery or treatment
- Consumption or ingestion of drugs
- Consumption or ingestion of alcohol
And that’s not the whole list.
Accidental death insurance is a good ‘add-on’ to actual life insurance coverage. I have seen a few payouts in the past because, as they say, accidents happen. My bone of contention for this particular policy is that the insurance was sold over the telephone and was not fully explained to the person. All along they thought they had 100% life insurance coverage but in the end they only had coverage if there was an accident that caused their death.
When we set up an insurance plan for a client, complete a needs analysis for them, find a company that fits, complete all the necessary documents and order the required medical tests. Once approved the client is insured no matter the reason of their death (there are some exclusions that are the same for every company and they are explained to the client).
What is the point of this information post? Look at the insurance coverage you have. It may not be what you think it is. If you’re not sure about it give us a call and we will provide you with a complete insurance review. We will ask you why you bought it, if you know what the coverage is for, and whether or not you have enough. There is no cost or obligation to this service, I just want to be sure that you have the coverage you think you have.
There would be nothing worse than thinking your family is fully covered in the event of your untimely death and then they find out...when it’s too late.