Community Chat

[Tinkrbl44]

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@CalminHeart wrote:

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@Anonymous032819 wrote:

When it falls under the umbrella of "Life Insurance", but is another product.

As some of you may remember, going through my dad's bank statements, I came across a monthly automatic withdrawl that said, "AAA Life Insurance".

Come to find out, he had a policy for accidental injury/death, and that it is not a true life insurance.

So, if he got injured, or died in a automobile accident, then monies would be paid, but dying of natural causes, they don't pay out on.

So, that solves that mystery.

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I worked in the insurance, fixed & variable annuities, and securities field for nearly 40 years.  This is just one type of life insurance - an option offered alone or as an add-on to a life insurance policy - by a lot of companies.  It's not fraud but I am not sure why anyone would choose it as a stand-alone.  I've received a lot of those AAA apps since I turned 65 and understand how someone might check the wrong box or miss another box.  I'm sorry it wasn't caught and fixed prior to his passing.

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@CalminHeart  @Anonymous032819 

Let's say a person comes from a long line of people who live to be close to 100, and there aren't any major illnesses in the family,  If that person travels a lot, or has a long commute, or has a higher than normal occupational risk (construction or factory work, for instance) then being more heavily insured for Accidental Death would make a great deal of sense.   It IS life insurance.

These things need to be discussed with someone knowledgeable so an informed decision can be made.   Even when an Explanation of Benefits is very, very clear, people still miss key points.

[MarieIG]

Yes, my husband received an ad for that type of life insurance.  I read it, it was for accidental death only.  Threw it in the trash.

On the otherhand, my son was able to easily get (extra) insurance for death from illness.  However, he's in the military and did not want his life insurance to be limited to natural causes. 

[Kalli]

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@SahmIam wrote:

@Kalli I believe you're talking about the Gerber Life policy. Still being thrown at parents as we speak. My parents bought it for me as a child; 50 years later it's worth $600 though they paid $15 a month for 21 years.

Yep.

My dad had SO much insurance on him when he was employed due to all the traveling. Multiple millions would be paid out if he died in any way other than natural causes. Once he retired, he cut back on the accidental and upped his "natural causes" life insurance policy. When he died of pancreatic cancer, my mother found herself with a healthy chunk of money that she then turned around and invested.

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@SahmIam I’m sorry for the loss of your dad. 

It sounds like you’re right about my friend having the Gerber insurance policy.