What is an AD (Accidental Death) Policy?
This policy acts as a VERY INEXPENSIVE Life Insurance Policy but covers the insured listed on the AD in the unfortunate event that he/she dies as a result of a car accident. If someone we’re to loose their life in the accident or as a result of complications from a traffic accident and they are covered under this policy than the “Death Benefit” will kick in and pay out the Face Amount of the policy. Those Terms and Face Amounts are listed below.
Accidental Death Policies are an easy and logical addition for any Producer to add to an Automobile Policy and here are some reasons why:
1. The obvious reason is that if your client passes away as a result of a traffic accident the family will be blessed with the face amount of the policy to help with the needs of a family that has lost a loved one.
2. These policies are relatively inexpensive compared to the amount they will pay out and so if your client only has Liability coverage you can offer this policy to supplement the lack of medical coverage. If a loved one passes with only Liability coverage the family will need to bury the loved one, replace the automobile, and replace the loss of income since they did not have full coverage. The AD is a great policy to help with some of those costs.
3. Are your clients taking some time to travel our great nation? If so, they can have comfort in the fact that their AD Policy covers them ANYWHERE IN THE CONTINENTAL US.
4. Do you have clients with out-of-state licenses or MEXICO DRIVERS LICENSES? No problem! This AD Policy covers out of state licenses and Mexico Drivers Licenses.
5. THIS POLICY CAN BE PREMIUM FINANCED! Ideas on How to Package Your Accidental Death Policies:
Family Plans: Sell an AD Policy to each member of the family with a license! The primary receives the biggest face amount and the rest of the drivers can receive whatever benefit amount they desire for 50% OFF THE PREMIUM AMOUNT! This is a great way to add commission to your pocket and to make sure the whole family is covered. Renewal Attachments: Don’t renew any client without informing them of this great new policy.