AD&D and life insurance questions

[Warped]

What is the name of your state? Virginia

I know this may seem a stupid question but it is my understanding that Accidental Death and Dismemberment insurance only pays off in the instance of death if it is due to an accident, is that correct? The reason I ask is because my mother has terminal cancer and I'm trying to get her affairs in order and she seems to have multiple (5 or 6 so far) AD&D insurance policies. Asking my mother isn't an option at this point as she suffers from dementia. My questions are...

If AD&D only pays out in the instance of death by accident and not natural causes, what happens to all the money she has paid into these policies over the years? Is that just the gamble she took when she initiated the policies?

Is there any way to tell how many life insurance policies she has other than tracking down the paperwork among her possessions? So far, I've found two and one of them dates back to 1954 and has paperwork that states that it has been paid in full and she received some sort of refund, "per the contract" decades ago.

I would really appreciate any help that you folks could offer in this.

Jeff

 

[Dandy Don]

Yes, it is a gamble she took when she purchased the policies. The insurance company gets to keep this money she paid as premiums. Unfortunately, that company and other companies use scare tactics to make people wrongly assume or be fearful that they might die from AD&D, when the statistics show that that is not the case.

There is not one central database nationwide where one could check for outstanding insurance policies. You will need to contact each individual life insurance company to find out whether the policies they have are still in force. The one you mentioned where she received a refund means that she probably decided to cash in that policy earlier to get her refund and is probably an indication that that company no longer has a policy in force for her. Let's hope the other policy is still in effect and paid in full.

If you were interested in paying approximately an $89 fee, there is a website/company, www.L-LIFEINSURANCE.com that searches the top 400 insurance companies in the nation to see if an outstanding policy is available.


DANDY DON IN OKLAHOMA ([email protected])

 

[ALawyer]

Before you kick yourself or blame your mother, please know that for young people accidents are the major cause of death. And AD&D also provides certain benefits in the event of loss of sight, limbs, etc. DUE TO ACCIDENT. Further, AD&D costs a fraction of what most Term Life would have cost and a tiny fraction of what Whole Life, Universal Life or Variable Life -- which are so called "permanent" cash value life policies -- would have cost.

Thus getting AD&D was a calculated risk, and it is too late to agonize over what might have been, as most of the term and many permanent policies likely would have been discontinued or lapsed by this time based on industry lapse rates.

I am sorry your mother is suffering and hope that you can remain strong for her.

 

[Warped]

Virginia

Dandy Don and ALawyer,


Thanks for the advice. I figured that the AD&D policies were a calculated risk on my mother's part but I wasn't certain if they paid out in the event of a death from natural causes or not. I've found a two life insurance policies so far that are still in effect. Thanks to both of you for the help and the service you provide to everyone who visits.

Jeff