Basic Life and Basic AD&D Insurance

Life insurance can be an important step in safeguarding your family's overall financial plan. It provides financial support to surviving dependents or beneficiaries after the death of a loved one. It can help pay for funeral expenses, mortgage and car payments, household expenses and school tuition. The amount you will need will be dependent on your needs.

An accidental death and dismemberment policy provides financial benefits to the insured or their beneficiaries in the event of accidental death, serious injury, or dismemberment resulting from an accident.

Your coverage may include guarantee issue. Guarantee issue means that you can elect coverage up to a certain dollar amount without having your current or past medical history taken into account nor will you have to submit an Evidence of Insurability form. Please refer to your policy for more information.

Your Basic Life coverage includes Accidental Death & Dismemberment coverage. This benefit provides coverage if you die by a covered accident or lose a body part as a result of an injury. Dismemberment includes loss of function or use of a body part, including your eyesight, speech or hearing, or losing a body part, such as an eye, finger, or limb.

This policy has a provision that allows you to collect a significant portion of the death benefit while you are still alive should you become terminally ill. The money can be used at your discretion to pay for medical expenses or even to do specific things with your family and friends while you still can. The amount you take out early will be subtracted from the death benefit payment along with interest. Refer to your policy for detailed information.

• Conversion allows you to convert your life insurance to a permanent life insurance policy without going through Evidence of Insurability.
• Portability allows you to continue your current term life coverage without going through Evidence of Insurability.

Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person.

A simple way to answer this is by asking: "Do I have anyone dependent on my salary to sustain their standard of living?" In other words, if you were to pass, would those still alive have issues covering the cost of your burial? Covering rent or mortgage payments and other bills? What about any remaining medical costs? Would they have enough money to cover those and still maintain their normal life? If the answer to any of these is "No, they wouldn't," then you should consider what life insurance options work best for you and your needs.

Your policy may have a guarantee issue limit. Guarantee issue means that you can elect coverage up to the guarantee issue limit without medical questions or Reliance taking your current or past medical history into account. Any amounts over the guarantee issue will require evidence of insurability.

An AD&D insurance policy will payout in the case of an accident or a health-related incident. This suggests that the insured's death was not caused or led to by a disease. Accidental fatalities include motor vehicle/heavy machinery accidents, falls and drowning.

The advantage of AD&D insurance plan is that they pay only if the insured is accidentally dismembered in any way. The loss of an appendage, sight, hearing or another bodily function is referred to as dismemberment.