LIFE AND AD&D 101
3 Reasons Life And Ad&d Insurance Matters
Life insurance pays a benefit if you pass away while you're covered, providing peace of mind by easing financial burdens. Many life insurance plans also include Accidental Death and Dismemberment (AD&D) insurance.
AD&D may pay your beneficiary if you pass away due to an accident – often in addition to your life insurance benefit. Or you may receive a partial AD&D benefit if you lose specified bodily functions (sight, limbs, paralysis, etc.) due to an accident.
Beneficiary: a person (or people) you choose to receive your life insurance payment.
Life insurance can provide:
Financial coverage for final expenses
Financial coverage for final expenses
As the typical cost of a funeral approaches $8,000, life insurance can provide your family with financial peace of mind. Life insurance payments can also help surviving family members with any medical bills or other end-of-life care expenses – which can be expensive.
Debt relief
Debt relief
Some families use life insurance proceeds to pay off their mortgage, student loans, or other large debts. Others may set up a college fund for younger surviving children, reducing the need for expensive student loans in the future.
Long-term financial protection
Losing an income causes financial strain within most families. Life insurance is designed to provide financial peace of mind though replacement of the lost income, often in a lump sum. Plus, life insurance payments are often tax-free.
In case of a debilitating accident, AD&D benefits can help you replace lost wages, pay for increased medical needs or housing modifications, and more. The money is yours to use as needed.
Life insurance can be a valuable financial planning tool to care for your family. If you’re not sure how much is enough, a financial planner can help.