The insurance industry has an awareness month for life insurance, for disability insurance and long-term care insurance.
Accidental death and dismemberment (AD&D) insurance has to make its way in the world on its own, with consumers, employers, and maybe even some agents looking at it skeptically and asking, “And you are…?”
But analysts at Eastbridge Consulting Group Inc. found in 2012, when they asked insurers about many different voluntary products, and that insurers were keenly aware of AD&D insurance: They identified it as their most profitable voluntary product.
AD&D coverage protects people against the risk of a death or the loss of a body part due to an accident.
It’s often sold along with life insurance and health insurance. PolicyGenius.com, a web-based quote service, says consumers can buy stand-alone AD&D coverage for less than $10 per month per $100,000 of coverage.
Jennifer Gassaway, life insurance product manager at The Standard, recently talked about her views on the product in an email interview.
Here are five things she said about AD&D coverage, drawn from the email interview.
1. Agents should think of AD&D as a side dish, not an entree.
“Advisors should raise awareness for AD&D in a way that does not take away from life insurance, because life insurance is a foundational piece to financial security,” Gassaway said.