KNOW WHAT YOUR INSURANCE POLICY COVERS
After twenty-six years of marriage, Benny Cardenas lost his wife, Maria, following a three month battle with cancer. He felt a slight sense of relief knowing that he had an insurance policy for $200,000.00 that he was offered through his credit union and had been paying on for six years. However, when he went to collect on it after Maria’s death, he was told that it was actually an AD&D (Accidental Death & Dismemberment) policy. Benny didn’t even know what an AD&D policy was—he thought it was life insurance! Because Maria’s cancer wasn’t an accident and she didn’t lose a limb, the policy paid nothing. Benny was upset and told the insurance company, “You’re a bunch of crooks!”
This is a very unfortunate situation, but he tells his story in an effort to make people aware of the importance of understanding exactly what coverage your insurance policy provides. Life insurance and AD&D insurance are two very different products. They both offer important coverage, but they are very different. Accidental Death & Dismemberment insurance pays a benefit if the person covered by the policy dies as a direct result of an accident, not due to natural causes such as a disease. AD&D also pays partial benefits for the loss of vision or a bodily appendage, such as a finger or limb, in an accident.
We recommend consumers carefully review all financial documents and seek professional financial advice so that they can make informed decisions. There is a lot of information included in an insurance policy and it can be confusing. Home and auto insurance provide different coverage depending on the policy too. Insurance Professionals of Arizona can take the guesswork out of purchasing an insurance policy and custom fit your insurance policy to your specific needs. Fill out the form for more information or call us at 480-981-6338. We are located in Mesa, but serve the entire state of Arizona.