Free Accidental Death & Dismemberment Insurance… Yay?

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I’ve been noticing that multiple banks like Washington Mutual, Bank of America, and other banks have been offering me “free” Accidental Death & Dismemberment (AD&D) Insurance. Usually I get around $1,000 to $3,000 of complimentary coverage, just for being a valued customer. Awww, how thoughtful! At first glance, it sounds pretty good. That could cover a few funeral expenses in case I decide to go sky-diving again.

Of course, they are always “proud” to be able to offer you more coverage at a rock bottom price. Additional covered for you is only $1 per month for each $10,000 of coverage. But wait, that makes my $1,000 of free coverage worth…. 10 cents a month Hmm, they must value me a lot to spare $1.20 a year for me…

As you might guess, the price isn’t that great. And again it only covers accidental death, so it’s not as comprehensive as traditional term life insurance. But it does cover dismemberment, and somehow my morbid sense of humor was amused by the dismemberment payouts. I can just imagine some actuary researching on how many people lose a thumb and index finger on the same hand. Just a thumb? They’ll be fine.

100% Benefit
Death 🙁
Both Feet or Both Hands
Entire Sight of Both Eyes
One Hand and One Foot
One Hand and Sight of One Eye
One Foot and Sight of One Eye
Speech and Hearing

50% Benefit
One Hand or One Foot
Entire Sight of One Eye
Speech or Hearing

25% Benefit
Thumb and Index Finger on Same Hand

So, should I bother taking it? I’ll probably pass, but it is still free. If I add up all my offers over time I might eventually build up a nice bounty. Probably not worth giving up the personal information needed, though. Anyone else sign up?

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  1. My car insurance company has also provided a complementary AD&D insurance as has bank of america. Pass…

  2. Matt Good says

    My bank did the same thing – I took my free coverage. I don’t remember having to give out personal information (probably was just pulled from the bank). But I haven’t noticed an increase in junk mail and (more important to me) there was no email address involved. But I’m also young and don’t have a term life policy yet, so any extra coverage is less of a drop in the bucket for me.

  3. ParatrooperJJ says

    Well they already have all your personal info so I don’t see a problem there. You might check if the master policy has a subordination clause. That means it pays after any other insurance. In practiality, that means that if you have more then one policy, it won’t pay anything.

  4. I signed up for something very similar to this, and was bombarded by junk mail for companies like

    Not worth it for the hassle and the privacy concerns I have.

  5. I agree with Matt and Paratrooper, I have accepted 3 offers for $1K coverage. The “subordination clause” is something I hadn’t considered though.

  6. Didn’t take the coverage.

    But now that you’re a homeowner, I’d love to read about what you two do for life insurance.

  7. Term Insurance is cheap, you can get half a million dollars (20yr) for around $20/mo if you are in your mid twenties. Really only one reason to get permenant; if you spend all your other money instead of investing it, then whole life has an ok cash value as a back-up plan.

  8. My husband got a really nice offer for $1MM worth of accidental D&D for 9.95 a month. He was working in home improvements at the time, so there’s definitely some danger. Anyway, we still have it (somehow this was thru JC Penney) and I guess it’s really not a bad deal. My first thought was that it wasn’t necessary, but you never know. It had the same kind of schedule as above (with the hands, feet and eyes). Yes, kind of weird to think about — how they break down your body parts, yechhh! We have regular term insurance too.

  9. Ya, I saw something recently from my credit union…….and I never jumped. But I was about as torn as I could be.

    #1.) It’s my own CREDIT UNION!!! (I should be able to trust my credit union, no?)

    #2.) The initial “free” amount was small…….BUT……was thru some insurance co. (obviously) and I was just wondering……my credit union’s trying to pitch me “insurance”. Banks use money to make money………they don’t sell insurance.

    I was torn so I just shredded the offer. In the long run I went back to the old adage, “There’s no such thing as a free lunch!!!”

  10. I read the stipulations on one of those insurance policies once. I didn’t get the impression that the insurance company planned on making many pay outs on the plan. The restrictions probably let them deny a lot of claims that they get. This also explains why the cost of this insurance is so low. One of the things it will not cover is an accident involving an activity like sky-diving. 🙂

  11. @ Red,

    Insurance is one of the best ways to make money – I’d be surprised if your CU wasn’t selling it!

    What else can you sell to someone that they probably won’t use, all the while investing their money for your own profit??

    True, the CU may have to pay out someday, but think how much they’ve accrued from interest earnings while your money was sitting in their account instead of your own!

  12. BTW, the credit union is paying NOTHING and actually getting money to stuff it in the envelopes. They are trying to get you to sign up to the ‘additional’ insurance which is where they are making their money.

    Personally, I just TODAY got mine from the credit union, $2000 for a year. But it’s free and I sign up for it each year so they have my information already. It’s nothing compared to my Term Life policy which I picked up years ago, but something is better than nothing.

  13. AD&D is so cheap, because statistically your chances of having one of those is extremely low. Most advisors rec. just to carry enough life and disability insurance and forget the AD & D.

  14. I consider any cause for me to die as accidental. I didn’t plan the heart attack, but for some reason I feel that having a heart attack would not be considered accidental.

  15. A heart attack is not accidental. I met a widow who husband died of a heart attack and the AD&D denied the claim stating that it was a natural cause of death.

  16. They have to make it thumb and index finger on same hand b/c too many hard-pressed idiots out there decided that one little finger was worth less than the $10k or whatever their policy paid.

    I sold accident insurance for several years… thankfully not anymore 🙂

  17. I think you were only kidding about the sky diving thing, but in most cases a sky diving death or injury probably isnt covered by most policies, in fact its usually listed as an example of an exception along with piloting a plane, and mountain climbing.

  18. how can a heart attack not be accidental? i thought anything other than suicide is accidental

    my agency’s basic life insurance has this ad&d insurance included, it’s something like 50% of the basic life insurance amount for the 100% you have above, which is my salary+2k

  19. Living in California, I know my chances of getting hit in automoible crash are more than than my chances of dying by any other cause. So, I took all of the $2,000 offers that I got from my 5 credit unions. I rejected the one I got from Bank of America. They’re free, after all. And, I don’t mind junk mail. I keep a trash can and shredder near my mail box. But, it’s been years and I haven’t noticed any increase in mail received.

    One thing that should be noted is that if you get your coverage through a credit union, it’s most likely free and will be automatically renewed each year. But, if you get yours through a regular bank, it’s usually for a limited time and then they bill you for a small amount afterwards.

  20. AD&B is a good product if you cannot qualify for life insurance. It is also a good complimentary product to life insurance. A heart attack in these policies is indeed NOT accidental. That is considered a health-related issue. Anything health related is not included in AD&B. Otherwise, many people would be denied this type of policy.

  21. Sherrie Thalmann says

    I read things like how can a heart attach not be accidental? Easy. Direct Energy Weapons make your blood pressure go up and down untill you have a heart attack. These weapons can be bought on or through the internet. Keyword Direct Energy Weapons. Also there are herbs such as Foxglove that make your heart bloodpressure go up and down. I am sure there are also things I do not know about.

  22. Has anyone purchased the Accidental Death Beneifit, at charges from 12.95 to 19.95 per month, from B of A? Reading the fine print, I am thinking it would be hard to get a claim paid.

  23. Brian Gruss says

    As an insurance agent, I tell my clients that AD&D is not usually worth the extra expense. A good term life insurance policy as well as a long term disability policy would cover what the AD&D covers and so much more.

  24. Wow…I am so surprised at how uneducated the world is about insurance!!! These “AD&D Policies” are not being created by your CU, nor does your CU sell life insurance/AD&D. They have partnered with some insurance company (probably AIL, seeing how they only “work with unions and associations”), because they conned your CU into allowing them to “help their members out” when it is nothing more than a play to get their member lists to use as leads to generate sales for themselves. VERY unethical practice by some of the companies out there. It isn’t your CU’s fault, but the insurance company because they not only lie to you, but your CU. They tell your CU that they want to help spread whatever free benefits to their members, but NEVER do they mention to the CU that it is only as a means to get their foot into your door and sell you high priced insurance. If the insurance company offers you the free policy directly to you, by all means take it. But if you get something from your credit union that doesn’t particularly look like it is pertaining to the line of business that you are already aware of with them, call them immediately and ask what company the policy is through. NO INSURANCE COMPANY should hide behind your union or association.

    Don’t get me wrong, AD&D is excellent by all means. It isn’t typical life insurance as you would think. If you think you are going to get it because you don’t qualify for life, because it is cheaper than life or to substitute life in any way, think again. It is IN NO WAY A SUBSTITUTE FOR LIFE INSURANCE. It is an excellent addition to life insurance though. It isn’t “hard to file a claim” or anything. That is the thought of an uneducated mind. It isn’t life insurance plain and simple. It is what it says it is, an insurance for Accidental death and dismemberment. That isn’t hard to figure out.

    Another thing, if you are young, get your life insurance NOW!!! While your premiums are low, health is good and your policy can be larger. Every year your premium will go up if you don’t and if you get it while you are young, you will be locked into that low premium for the rest of your life until the end of the policy one way or another. Term is only good for if you have purchased a home, a new car, etc and do not want to have that expense to fall back on your loved ones if you pass unexpectedly and if you have a family (wife, children) who financially depend on you, then you need Term to cover your loss of income in the event of an unexpected passing. Term should never be purchased as a funeral coverage. There is a reason why they are cheap. Term is a life insurance company’s biggest cash cow, because they hardly ever pay out(even less often than AD&D) (not because the insurance company doesn’t want them to, just that the policies aren’t designed and aren’t supposed to have been designed to be used for funeral expenses and fall off at a certain period of time laps or have to be renewed causing an increase in premium and completely falling off at age 65 in most cases)…

    If you go buy a house tomorrow with a 30 year mortgage on it, purchase a 30 year term for the amount of the mortgage. If you buy a car on a 5 year note, purchase a 5 year term for the amount of the car note. If you expect to retire in 20 years and have a wife/children, purchase a 20 year term for enough to cover your income for a few years to allow your wife to be able to keep up with the bills until she can get on her feet in the event of your passing to cover the loss of income. If you are born period, which I hope you are-I would think so…lol, get a whole life insurance policy on yourself and don’t forget to factor the amount that it will cause for all your medical/funeral/debt expenses at the expected life expectancy for you to live. It is always going up each year. What you pay today for a funeral or hospital bills will not be the same in 30 years.

    ALWAYS shop around for the best deal!!! Check out the company’s reviews online before you purchase. If they tell you that you have to make a decision while they are there that day, DON’T BUY. It is a pushy sales tactic and we all know pushy = scum. Their pricings aren’t going to go up for you until your next birthday comes. You don’t have all the time in the world to make a decision, because you don’t know what tomorrow will bring, but you don’t have to be pressed into a rash decision either. Don’t forget, large companies will have some bad reviews, but don’t let that hinder you if they are in moderation compared to the company size. Averages count for everything. A company with 1000 policies written with 100 bad reviews is much worse than one with 100,000,000 policies written and 1,000 bad reviews. Do your homework before you put your money out there.

    I think the most hesitating thing I have ran across is that customers are afraid (yes I am a licensed insurance agent) to give out their banking information due to all the fraud out there. This is not something to be worried about. Most insurance companies require it. It doesn’t mean they are conning you if they ask/require it. It is actually FOR your protection in the long run. You age, get ill, have an accident, etc. and the next thing you know, you forgot to pay your life insurance premium and it lapses. We don’t want that because you need those benefits to pay out to cover your final expenses so that your family won’t have to deal with that burden. Generally speaking, life insurance isn’t for your benefit overall (except that cash value nest egg that builds up), it is for the benefit of your loved ones to take the burden off them.

    It is usually more beneficial to purchase either benefits through an independent agent or brokerage that has contracts with multiple companies. Brokerages are there to shop for you, for what is best for you, not the companies. All though most cases and independent agent is out for his own pocket, they benefit more by shopping around for you as well, that is if they are contracted with multiple companies and not confined to one company. If they are captive agents (only allowed to work under one insurance company, Allstate, State Farm, American Income Life, etc.), don’t get me wrong I’m not saying they are evil or anything, but they are unable to shop for the best rate for you. They have what they have to offer by their parenting company and that is all they have to offer period! They are also commission based and are known to be a bit more pushy because of how limited they are and the fact that they are happy only when you buy THEIR product. Brokers and independent agents are more concerned with getting you the best deal than trying to sell you THEIR product.

    Just some food for thought guys…much love!!!

  25. Another thing about AD&D…to clarify, death by skydiving is not considered accidental due to the fact that you accepted the risk when you jumped out of the plane. It would be like asking the insurance company to pay out when you are a crash test dummy. Reckless behavior carries just as much risk as suicide. To file a claim on AD&D when you knowingly and deliberately put your life at risk is insurance fraud. Basically, if you did something stupid to put yourself in that position, frankly, it isn’t an accident. Accident is “unintentional”. If you intentionally put yourself in harms way by skydiving or robbing a bank and getting shot by a police officer, it isn’t an accident. If you are out partying and get drunk and decide to drive home drunk and hit a tree and get thrown from your car, it isn’t an accident. An accident is neither intentional nor is the probability naturally foreseen. If you are in a car accident where some drunk driver hit you and you were killed from a head injury or something, that would be an accident because you did not make the choice to put yourself in danger. Just had to clarify that….

  26. AD&D Insurance is a skim aimed at the banking and credit union customers, you will see no bad in free insurance, but, there is a bottom line with AD&D, if they offer this to every bank and credit union customer at $1.00 per $1000, you my say “Yeah” but could you every make a claim if you had a lose of use or dismemberment. Most likely NO. If the bank or credit union offer it for free, where is the policy the tells you what you are being insurance, did your bank at that time give you a copy of this policy, and by what authority did your the seller show you that they had the power to honor this AD&D insurance. ????????

  27. Mary! Show me the policy. Here is the problem, when you are given something for free, Insurance, and then they ask you if you wish to increase this insurance for $1.00 per $1000 and you take advantage of the offer the bank or credit union becomes a insurance broker and in California for an example you must be licensed in California as an agent there are rules to selling insurance. How would the pare-shooter know that he or she will not be cover if they never received a policy or a licensed agent never explained their policy in full or they have not read the requirements. I have watched AD&D fraudulent tacked for years. It seems that you have a job with Hartford or Affinity or AD&D in general. They are taking millions for banking and credit union customers, with know delivery. Here is the thing about this every human on this planet need to have an checking or credit union account to do business in this world and AD&D and the banks or taking advantage. Because of the name of the insurance is suggestive by nature and there is know if behind the name AD&D insurance. Skydiving is a sport and for some it is part of their job, yet, if I when fishing and injured myself, or had to jump from a plan while I was on active duty and have a claim. One fishing is a hobby and I know I could have a injury why fishing,”a big fish jumps off my hook and bits my hand off do I have a claim,” Yes or No” mind you I know fish are sometimes dangerous when deep sea fishing, like skydiving is not dangerous all the time just some of the time. Can you subscribe that when your time is up, your time is up. If the policy do not state that skydiving is not cover then it is covered. If you never receive a policy that states there is no coverage for this and that, then it is covered. Do not get me wrong I would never step into a rattlesnake pit because I know that if bitten I may die, but if the policy does not state that rattlesnake pit workers are not covered. Then rattlesnake workers are covered. Our military men and women jump from planes every day while on active duty, yet, Hartford sells their AD&D insurance to Federal Credit Unions everyday it seems to me they are into it for the making of that $1, and will fine every and any way of getting out of paying. There are accidents in skydiving because it is a career that some people my have or a hobby, there are safety measures like and any other sport or hobby, and there are accidents.

    • I don’t agree. They may ask you to take out more for 1.00 and there may be a catch to it (I don’t have a policy in front of me so I’m not sure) BUT you say NO. There is no risk. Take the 1-3k and say no to everything. It’s only going to pay say if a tree fell on your house and killed you in bed, or if a plane crashed and debris hit you or a car driven into your house. Not even sure a bullet through your window would count (because someone they say was aiming for you and not accidental). So there is going to be rare instances where you get it, but it is FREE and there are laws protecting you hopefully (republicans rolled a LOT back during the Trump years so I am unsure now all of them) from .. you may get spam. But it’s 3k for me and my husband each that could go to my kids/grandkid. I already paid for my funeral expenses. They just need obituary money and it will cover that and any incidentals and a nice night out … or a months’ rent or car payment. SOOOOO, I think people should just monitor their credit reports to make sure nothing fishy, take the free policy and chuck out offers and solicitations/add them to your spam folder. DONE

  28. I was told if you change banks the free AD&D insurance becomes void.

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