Insurance Agent Forum

[brown]

I was looking for a consumer section in which to post but couldn't find one. Apologies if I am posting in the wrong place. Maybe someone could direct me to the appropriate URL. I know you are expert insurance agents here.

Yesterday in the mail I received, unsolicited, what seems like an amazing offer from Mutual of Omaha: a $1 million "accidental death" policy for just $24.95 per month. What seems amazing about it to me is that the letter appears to say that my age (which happens to be 54) does not matter, there are no medical tests or health questions involved and the rate will never increase.

Maybe my problem is that I am failing to understand the difference between a life insurance policy and an "accidental death" policy. Semantically speaking, I thought that all death (except suicide) is accidental but maybe this is not the case as far as insurance policies are concerned. There is no explanation in the offer that was mailed to me.

The reply envelope shows an address of 3316 Farnam Street in Omaha, NE 68172.

Guidance appreciated. Thank you!

[LGilmore]

Unfortunately, you are incorrect in your opinion of accidental death. Illness is not considered accidental.

Accidental death policies are "conditional" policies. They only pay if a certain condition is met. If the conditions are not met, the policy does not pay, simple as that.

So if this policy's guidelines state " the insured must be a paying passinger on a train, plane or bus." To collect for a death, it's got to be one of those three... boat? sorry. car? sorry again. Also "death must occur within 90 days of accident" means on day 91 the policy is void.

Cheap insurance is conditional insurance. READ carefully these payout conditions. If they seem reasonable to you or fair dinkum, then buy it. If you are considering a AD&D policy as primary coverage when you are healthy enough to purchase straight up life, well...sorry, no other way to put it, you're a idiot.

[dgoldenz]

Want to know how many life insurance claims are the result of an accident? Answer: Very few, probably about 1%. How else could an insurance company offer $1 Million in benefits to someone age 54 for only $300/year?

[Norwayguy]

I love these type of offers...first many people like you think that accidental will cover everything except suicide when that is not the case and when you read further most of the time to collect the $1 million you need to be a fare paying passenger on a plane bus or train. Other accidents will still provide a death benefit but much much less....read the little print on the bottom.

[SportsNut]

Originally Posted by brown

I know you are expert insurance agents here.

Yesterday in the mail I received, unsolicited, what seems like an amazing offer from Mutual of Omaha: a $1 million "accidental death" policy for just $24.95 per month. What seems amazing about it to me is that the letter appears to say that my age (which happens to be 54) does not matter, there are no medical tests or health questions involved and the rate will never increase.

Maybe my problem is that I am failing to understand the difference between a life insurance policy and an "accidental death" policy. Semantically speaking, I thought that all death (except suicide) is accidental but maybe this is not the case as far as insurance policies are concerned. There is no explanation in the offer that was mailed to me.

All expert insurance agents... Not ALL, just me... the rest of these guys are part time and trying to break into the business...

As someone else eluded to, at 300 bucks per year, they would need to attract about 4-5000 policy holders annual premiums just to pay the marketing costs and ONE claim. So do the math here... the probability is low, and likely lower than the 1 in 5000 ratio... Again, as was stated by one of the others, the conditions in which they will be obligated to pay a claim is like flying that 747 through the eye of that needle... very low probability...

The difference between the life policy and the acc benefits plan, when the accidential death plan needs to pay off, it is by "PURE ACCIDENT" because the offering company didn't really paln on that happening.

These plans should be offered under the label of "PT BARNUM INS" only... Step right up ladies and gentelmen, step right up... let me design a slick plan that will lift funds from your pocket and you won't see the slight of hand as we accomplish this.

AS to NO EXPLANATION with the offer... Simple, write to the company as request a "Sample Policy"... They probably won't share that info with you, which in and of itself should be enough of a reason to say PASS... but if they do send you one, after reading it you wouldn't likely agree to send them 25 bucks per month.

[oicu812nbama]

I will sell you the same policy for 2 bucks a month, but you have to die on the first tuesday of the month while haley's comet is passing by. Also death must be caused by a small meteor that hits you in the state of alaska on that same tuesday. lol
You get what you pay for. Never ever buy something through the mail. They are counting on you not reading the print or not understanding it. This includes AARP