Accidental Death/Dismemberment stop-gap?

[jeromedawg]

Hey guys,

So I'm having issues trying to negotiate lower rates for life insurance due to a condition that popped up from lab results that my doctor never made me aware of (at least as an "urgent" issue) - right now, I'm being given a hard time from at least one provider and they don't plan on dropping the rates. So my agent is shopping around and thinks to have found at least one or two others who may be willing to offer me preferred rates but on a lesser amount, which is fine. That said, I am waiting on a doctor's note clarifying something he wrote, which led the underwriter to believe it was an actual diagnosis (when it wasn't). The doctor is taking forever and in the meantime I've applied for group life through work, which requires a statement of health...argh.

As a last resort and stop-gap, I'm curious if I should just go ahead and purchase Accidental Death and Dismemberment through my work. My plan was to buy term life insurance this year, but I didn't anticipate the issue that popped up and that has now put a screeching halt to things. I guess I've been 'conditioned' to feel secure by getting life insurance, ad&d, and long-term disability coverage all these years that this past year I felt pretty vulnerable especially with a new kid in our life. And now with another on the way, the pressure is even greater.

So all that said, should I just get the Accidental Death/Dismemberment as a stop-gap (coverage would kick in starting January) but at least I'll have it in case there are any other 'complications' with the whole life insurance process, where it may take even longer to get a plan at the target rate or whatever...?

[jeromedawg]

Seems like a sensible plan.  Presumably the AD&D through work is not onorously expensive?  Even if pricey, it won't throw off your FI plan to have it just for one year, right?

Don't forget to run the numbers on what Social Security survivor benefits would be for your wife and kids -- that can offset the need for higher levels of insurance, especially if it proves to be expensive due to the medical issue.

Thanks, for $600k of coverage it costs about $4.20 (I think? Site just went down for benefits so I'll have to confirm that later) per pay period (26) so $109.20 a year? That doesn't seem too unreasonable assuming I only keep it for a year or so.

Is there a site for SS survivor benefits?

[Paul der Krake]

For a mid-to-high earner, your wife and kids would get close to 4k/month in SS survivor benefits until your children's 19th birthday if you were to croak early.

Check the numbers (and the accuracy of your earning record while you're at it) at ssa.gov. You will be shocked and wonder why there even is a life insurance industry.

[Goldielocks]

AD&D is quite a rare occurrence, so I would not worry about it too much, if your gap is only a couple of months.  But hey, $4.20 is almost nothing too.

What most people with family (and modes savings / investments, many years to Retirement) need:
1)  Long Term Disability
2) Home Insurance
3) Life Insurance


(oh, and of course car insurance if you have a car)

AD&D is quite a ways down the list...   somewhere close to mortgage or credit card insurance, really.  Just below nursing home care insurance..

[jeromedawg]

AD&D is quite a rare occurrence, so I would not worry about it too much, if your gap is only a couple of months.  But hey, $4.20 is almost nothing too.

What most people with family (and modes savings / investments, many years to Retirement) need:
1)  Long Term Disability
2) Home Insurance
3) Life Insurance


(oh, and of course car insurance if you have a car)

AD&D is quite a ways down the list...   somewhere close to mortgage or credit card insurance, really.  Just below nursing home care insurance..

Thanks, it's $4.20 per pay period. Doesn't seem like much but it does add up - guess that's like one Starbucks every couple weeks or what not.

Hm, I was sorta thinking of long term disability in the back of my mind. So I guess that wouldn't be a bad thing to pick-up at a minimum even if I don't decide to do AD&D?

BTW: long term disability insurance offered through work is $1.90 per pay period and covers 65% of my pay. Is that a 'no-brainer' I should probably just pick-up this time around and moving forward?

[Goldielocks]

LTD at that rate is a no brainer...   are you sure that isn't 1.90 per thousand dollars?  Seems pretty cheap, to me.

[Elle 8]

At my job proof of good health is required for picking up LTD at open enrollment just like life insurance so you may be in the same boat as the life insurance in that respect.

[jeromedawg]

LTD at that rate is a no brainer...   are you sure that isn't 1.90 per thousand dollars?  Seems pretty cheap, to me.

I'm not sure, it just says it's $1.90 per pay period and I would get 65% coverage of my current salary.

At my job proof of good health is required for picking up LTD at open enrollment just like life insurance so you may be in the same boat as the life insurance in that respect.

I didn't see anywhere where I had to fill out a statement of health, etc like I did when applying for life insurance through work. But maybe they'll contact me about this.

[Metric Mouse]

Seems like a sensible plan.  Presumably the AD&D through work is not onorously expensive?  Even if pricey, it won't throw off your FI plan to have it just for one year, right?

Don't forget to run the numbers on what Social Security survivor benefits would be for your wife and kids -- that can offset the need for higher levels of insurance, especially if it proves to be expensive due to the medical issue.

Shit. I should have gotten married and worked longer...