Dismemberment Benefit
A Dismemberment Benefit is a type of rider, or add-on, that you can purchase when buying a life insurance policy. If you are injured or dismembered in any way, the benefit will be paid out, if the injury is covered under your policy. Each form of dismemberment has its own amount of payoff from the benefit, listed in the policy, and the wording is very specific. For example, in order for a hand injury to pay off, you must usually lose at the very least a thumb and index finger, as a thumb itself is unlikely to warrant payment, and even this type of loss will not usually garner the full benefit amount. The more you lose, the more you are paid, but you cannot collect from both the loss of a thumb and fingers as well as the loss of your entire hand.
Is the Dismemberment Benefit Necessary?
Dismemberment benefits are most often provided for or purchased by people who work in heavy industries, such as construction or factory jobs. These people face a certain degree of danger in their work each day, and as such would benefit the most from this type of add-on. Dismemberment benefits are available for individual purchase, often with an accidental death policy, but most people would not benefit from them, as they are more likely to injure their back than to lose a limb. It is more beneficial to use the money you might spend on such a policy and put it toward a little extra life insurance, because eventual death is the one thing we can all be sure of.
The Details of Life Insurance: Benefits & Riders
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