Those AD&D Insurance Things
I got one of those sales pitches in the mail yesterday to increase my Accidental Death and Dismemberment Insurance I supposedly get through Provident Central Credit Union. The letter says I'm already covered for $2,500. If I pay just ten dollars more, I can up it to $100,000. I've gotten umpteen of these things from various organizations over the years. I'm wondering how legit they are?
Checking the credit union's web site, they do offer insurance, but I saw no mention of Accidental Death. They say Provident Plus Insurance is owned by them and works through a number of other "quality" insurance carriers. No mention specifically of Minnesota Life, though, which is the group that sent me the letter.
I believe the National Rifle Association offered one of these but I went to their web site a while back and couldn't find any mention of it. I'm sure there's probably at least a few organizations that offer such things at no cost, and maybe that's the beauty of it...for the people running them.
I'm sure most of us never think about these policies when something bad happens. All that money you or the organization pays for the policies probably goes for naught and the guys running it make out like bandits because so few people file claims.
That assumes they're legit to begin with. I could see some shady company sending me this letter, having me authorize payment of $10.00 of month to them, but the credit union might not know anything about it.
Seems to me they'd make out whether or not it's legit. But, if you kept track of all these funky policies- assuming they'd actually pay off- you might have all kinds of money coming to you if you remember to make a claim. Anyone have any first hand experience with these deals?
No, I'm not going to authorize the credit union to pay them ten dollars a month.
Addendum: It just occurred to me that Mary Walaker, of State Farm, works in insurance and was manager of Provident Central Credit Union for many years. I've sent her an e-mail asking for her take on this.
posted by Fred Mangels @ 7:22 AM
3 comments
3 Comments:
I'd always heard that this kind of coverage was kind of sketchy, just because nobody (statistically at least) dies accidentally: heart disease, cancer, various plagues and such, sure, but not in an accident. Presumably that's why the price is lower than your run-of-the-mill die-from-anything-and-we'll-pay-out insurance coverage.
That's my gut feeling. It probably wouldn't cover a death from an auto accident. But how about dismemberment?
Let's say I'm driving on the Eureka Slough Bridge, slide out on all that paint on the roadway and lost an arm as a result of crashing into the guardrail? That's dismemberment, but I'm sure there's a clause in these things where it doesn't cover auto accidents, or things otherwise insured.
Or how about I break my neck falling off the roof of my house?
Mary Walaker e-mailed me back and confirmed that Provident Central Credit Union does have AD&D insurance through Minnesota Life. She said what I got was likely just them offering more coverage than I get by default.
Well, DUH! That's what I figured, assuming it was real. Not es much info as I'd hoped to glean from her, such as how these policies work and if people ever file claims on them. I'll have to try and remember and ask next time I go in to see her.
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