Do I need AD&D if I have term life coverage?

chicagobride_07 · October 2013

So, DH was getting both life and AD&D coverage through his employer. With the birth of our daughter, I wanted to up his coverage to $1 million so we went and purchased a medically underwritten term life policy outside of his work.

He is having open enrollment now and I wanted to drop his company life coverage since we now have this elsewhere. They warned me if I drop life we also need to drop AD&D coverage as well.

Would we need this? The term life policy we now have in place should cover accidental death anyway, am I correct?

Thanks!

CuriousKiddosMama · October 2013

It's the second D that you would have to be worried about if you drop AD&D. DH works in the off-shore oil industry, and so he has both a term life policy and AD&D. You should be able to keep only the AD&D through work, I've never heard of them not wanting to take your money! AD&D will pay out if you get dismembered (like you lose an arm and can't work either temporarily or permanently).

hoffse · October 2013

Agree with PP - dismemberment is the real issue. You might want to call the insurance people directly instead of operating through HR (I'm assuming its the company that told you this, not the insurance people). My experience with HR has not been overwhelmingly positive, and I find that I usually get further if I contact insurance people directly. The insurance people will be able to look up the policy and tell you one way or the other about the AD&D coverage. It may be that your husband's employer subsidizes AD&D for him, and if he drops life they will no longer subsidize it - I could see your HR person interpreting that as "he needs one to have the other." My law firm has a similar set up for health, dental, etc.

As for whether your current life insurance covers accidental death, I would say it's pretty likely but you can't know for sure unless you read the policy yourself or call them to find out. There are all sorts of scenarios that life insurance often excludes (ie: suicide). Read your policy so you know what these are.

chicagobride_07 · October 2013

Thanks, ladies. I called our life insurance carrier and it does cover accidental death.

As for the AD&D through work, we're going through open enrollment now and the system won't even let you sign up for AD&D without life coverage. Not sure why but this is how DH's company has it structured. I'll have to debate whether it is worth keeping a small amount on the group life policy to keep the AD&D.

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