March 2014 Newsletter
Costs Cents, Makes Sense…
AD&D or Accidental Death and Dismemberment is not something we always want to talk about, but it can be a very powerful employee benefit that should not be left on your “injured reserve.”
We happen to live in a very unpredictable world, and unfortunate events can and do occur at any time. AD&D can be an extremely valuable benefit if one of these events does take place. It can provide financial stability in a time of need and it is also relatively inexpensive, usually costing 4 or 5 cents per $1000, while potentially providing very large payouts based on the type of incident.
AD&D coverage can work in a couple different ways. The first is in the case of a death that occurs by accident and is not related to an illness or disease. In this instance, the payout would go directly to the insured employee’s beneficiary and can be used, most importantly, to take care of the employee’s family and make sure they are as financially secure as possible.
The second is in the case of some sort of an accidental dismemberment to the client. This refers to the loss of one or more limbs, or the loss of a sense such as hearing or sight. Your specific benefits plan will state the exact amount which corresponds with each specific loss/incident.
Most people are under the impression that these tragic events will never happen to them, but the peace of mind granted from having AD&D coverage can re-assure an employee and their family that they will be taken care during these tough times.
These benefits are paid out tax-free and any premiums paid by an employer for AD&D are taxable in terms of Income Tax.