Is this true? Employers/ Ins co ....offer life insurance for both employee and spouse and will also offer...?

Question

accidental death and dismemberment insurance to the employee and spouse as well ?............... why would you want to have both insurances ??

Answer 1

Life insurance pays out when you die, no matter what the cause. Accidental death or dismemberment insurance will only pay in the event of certain specific causes of death. If your job is physically demanding and/or dangerous, it might make sense to have both types.

Answer 2

On the issue of life insurance for an employee and their spouse:

Usually the insurance for the spouse is a little more expensive since they are not being underwritten like the original insured or they may not be healthy enough to have a job like the insured.  Unless the spouse is unhealthy they would probably be better off buying a separate policy in the open market.  

On the issue of employer life insurance in general:

You are usually better off purchasing a policy on the open market unless you are unhealthy.  In a group situation the insurance company has to charge the healthy people a higher rate than is needed in order to compensate for undercharging the unhealthy people.  Also if you do buy life insurance through your employer then make sure you can keep the policy if you leave the company.  You don't want to leave your job and thus leave your life insurance behind and then realize that you can't qualify for a life insurance policy on your own anymore.  

What I usually tell people regarding the supplemental life insurance they are offered at work is this.  If you are on a time deadline to sign up for your benefits then go ahead and sign up for the employer life insurance and start shopping for a plan on the open market.  Once you have a separate policy in place you can always drop the employer insurance the next year when you re-enroll in your employers benefit plan.  If you are not on a time deadline, then go out and see if you can get a cheaper policy on the open market.

On the issue of accidental death and dismemberment insurance:  

The only reason you would want to have an AD&D policy in addition to your regular life insurance is if you feel that a sudden accidental death might create some extra financial burden than a drawn out death from a disease might not.

Answer 3

I have met similiar problem before, here is the information that I feel helpful..http://lifeinsurance.online-helpers.info...