My husband and I purchased term life insurance a few years back with the idea that if either one of us kicked the bucket, so to say, earlier than anticipated, we wouldn’t be financially decimated by that experience. (Emotionally is another topic, obviously!) Our policy was inexpensive, about $40 a month, for a policy worth $100,000 in case of death and it covers us up to the age of 80. Term life insurance policies have no cash value, so there would be no way for us to cash it out. When we signed our policy, this was best option for our situation since we still weren’t financially responsible at the time and couldn’t afford the premiums on a whole life policy.
Last year, we added a travel accident rider that is worth twice the amount of our original policy. This covers car accidents, plane accidents, pretty much any accident where one is physically moving to and from a place. This week, my husband had to travel to a funeral. As I was booking his flight on Monday, I realized I had forgotten to pay the annual premium on this rider! Now, I’m not wishing any ill-will on my husband (I love him!), but the idea of him traveling clear across the country and NOT having this additional policy in place made me nervous. As he was traipsing across the country on a total of 4 plane rides then renting a car and driving on snow-covered roads, I knew we had to remedy this before he left. With a quick call, we made our payment and settled my uneasy mind.Yes, I know. This sounds very shallow, wanting to make sure I eek out every dime possible in case of death. But that’s what life insurance policies are for!
A few years ago, National Geographic posted a chart showing all the possible and probable ways to die. With death being a 100% sure thing at some point in one’s life, it was an interesting tidbit of information. If you look below, you’ll notice heart disease is the primary killer among humans followed by cancer, but motor vehicle accidents are 4th! Plane accidents involving deaths are pretty low, coming in 13th, just after bicycle accidents. Funny thing, I’m not so sure my rider covers biking, an activity I do frequently. Take a look for yourself:
Ways to Go from National Geographic and 10 Minute Math
Do you have a life insurance policy that covers your spouse? What about travel accident insurance? If you don’t have a policy, what reasons made you decide to forgo one? Is this just a morbid topic that you rarely discuss with your loved ones?
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why bother paying extra for this rider..if you use a credit card to pay for your airline ticket, you get automatic travel accident insurance…(as long as your credit card has this feature)..
most rewards cards do..I know my Amex has it and so does Visa.
@Mr. Credit Card -You’re right. But the rider also covers car and pedestrian accidents. Of course, I’m not sure my bike riding falls under the pedestrian accident clause. However, it’s just a precaution. For only a little over $60 bucks a year, I think it’s worth it!
I definitely need to do some more research on life insurance. I would think most policies covered accidental death, no matter where it happens — isn’t that what the insurance is for?
.-= RainyDaySaver´s last blog ..Mortgage Interest Tax Deduction? No, Thanks =-.
@Little House – but couldn’t (or rather shouldn’t) you use your regular life insurance for those?
@Rainy Day Saver -You’re right. But my regular policy is $100K and for just $60 a year more I get up to an additional $200K. I think it would cost me more in the long run if I increased my regular policy to this amount (or $300K). So, I think it works out for the better if I stick to my rider. However, I haven’t really run the numbers.
@Mr. Credit Card- Yes. But I get up to an additional $200K for less than it would cost me to increase my regular policy.
The death rate of cancer scares the *** out of me. Most of the other risks you can avoid or minimize with a little precaution, but cancer can hit anyone anywhere.
You said, with that extra insurance, it will only cover if the policy holder died from accidents. I just wonder, does your regular life insurance allow double covering like that?
We have life insurance from our retirement fund company which is cheap and tax-free.
.-= Bytta@151DaysOff´s last blog ..Day 23: Is Travelling Worth Your Money? =-.
@Bytta – That’s a good question. I need to look into this. I also have a small policy through my work as well, I need to do a little more homework. But I still think I’ll keep my travel accident insurance for now. Thanks for the comment!