19 August 2013 0 Comments

Myth: Only Accidents Take The Young

be careful out there(More questions I’ve encountered over the years)

Q.  I’m 35, and in great health.  Why would I need anything other than an Accidental Death Benefit policy to protect my family?

A.  As long as you die from an accident, that would work.  Is that what you’re counting on?

Q.  Sure, the odds are much greater at my age of an accidental death than anything else.  I can get a $500,000 Accidental Death policy for only $48.00 per month.  Why pay for a regular life insurance policy?     

A.  Ok.  For starters let’s deal with the odds of death caused by an accident at various ages in the United States.  From ages 25-34 accidents account for 29% of all deaths in that range.  From ages 35-44 it’s 17% and from 45-54 it’s 8%.  Definition of accidents includes traffic accidents, homicides, falls, drowning, fires and other injuries.  Additionally, suicides account for 16% of deaths from age 25-34, 11% of deaths from age 35-44 and 6% from age 45-54.  Suicides are not covered under an Accidental Death Benefit policy, but would be included in a regular life insurance policy after 2 years.  You can check these statistics out on: www.worldlifeexpectancy.com/usa-cause-of-death-by-age-and-gender.  Does that refute your understanding of the cause of deaths?

Q.  Yes, but regular life insurance is too expensive for me to afford.  Isn’t my family better off with an Accidental Death Benefit policy than with nothing?

A.  True, but if you’re in as good shape as you tell me you are, you could buy a $500,000 Twenty- year Term policy for about only $24.00 per month.  And if you wanted to add $500,000 of Accidental death Benefit to that policy, bringing the total death benefit to $1,000,000 for death from an accident, the monthly premium would be only about $43.00 per month.  An Accidental Death Benefit Policy only makes sense if the premium for a regular life insurance policy is greatly increased or not available at all due to an adverse health or life style history.  Even then, if term is available at any price, you might be better off buying a reduced amount of term life because if you are in poor health the odds of your dying as the result of an accident are even less.

Next…more life insurance myths revealed.

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