When you think of Accidental Death & Dismemberment (AD&D) insurance, you might picture adventurers scaling the peaks of the Andes, exploring underwater caves in Mexico, or navigating the icy roads of a remote Alaskan expedition. While these activities can indeed require specialty coverage, the truth is that AD&D insurance is more commonly utilized in three specific scenarios:
- Immediate Needs During Estate Planning
- Immediate Needs During an Acquisition
- Business Group Travel
In this post, we'll explore how advisors can use AD&D insurance to protect their clients in these situations and showcase real-world case studies to illustrate the power of this solution.
Immediate Needs During Estate Planning
For life insurance advisors, traditional life insurance is often the cornerstone of comprehensive accident and sickness coverage, and it’s typically the most cost-effective solution. However, there are times when immediate AD&D coverage becomes crucial - especially during estate planning for high-net-worth clients with urgent timelines.
Case Study: Bridging the Gap with AD&D Insurance A widower and single business owner who sold their business for $125 million faced an immediate need for coverage to protect their heir’s newly established estate tax liability. With a planned overseas trip and traditional whole life insurance still in progress, the family office recommended an Accidental Death policy to hedge the tax liability.
Download the full case study to learn how an AD&D policy provided a quick and effective solution.
Immediate Needs During an Acquisition
Life insurance is essential during mergers and acquisitions, especially when a key person is involved. It protects the deal’s value by mitigating risks tied to the loss of critical leadership or expertise, ensures business continuity, and fulfills lender or investor requirements. AD&D becomes especially valuable when there isn't enough time to fully underwrite traditional life insurance before the deal closes.
Case Study: Private Equity Managing Partner A private equity firm, recently acquired by a global investment firm, needed life insurance for its managing partner as a condition of the global firm's majority investment. Due to the intricate nature of the acquisition and the swiftness with which it was executed, the advisor on the case was unable to secure fully underwritten traditional life insurance within the required timeframe.
Download the full case study and discover how a $25 million accidental death policy provided a timely solution during a high-stakes acquisition.
Business Group Travel
When a company’s most valuable executives board the same plane for a retreat or site visit, the stakes are incredibly high. Protecting against the potential loss of key personnel in such scenarios often requires rapid solutions.
Case Study: Protecting Revenue Generators A privately-owned company needed coverage for five top executives embarking on a single flight for their annual retreat. As exceptional revenue generators, the loss of any of these individuals would have been catastrophic. AD&D insurance provided a seamless solution, addressing the combined travel risk with urgency.
Download the full case study to see how this challenge was met effectively.
Benefits of AD&D
The excess market offers unparalleled flexibility for AD&D insurance, including:
- Worldwide Coverage: Policies provide 24-hour global protection.
- High Limits: Benefit amounts exceeding $100 million per person.
- Flexible Terms: Coverage duration range from 1 day to 3 years.
If you are interested in learning more about Accidental Death and the solutions available through the Excess Lines Market, we extend an invitation to you for an exclusive webinar that promises valuable insights into the world of unique insurance solutions found in the Lloyd's of London market.
Title: Kickstart 2025: Master 6 Lloyd's of London Solutions to Transform Your Practice
Date: Tuesday, January 28th
Time: 9:00am PST | 12:00pm EST
