I only bring this up because a former client of mine, convinced that I had misinformed him, dropped his Lloyds of London Accidental Death and Dismemberment insurance covering him for all acts of war and terrorism. He works as technical support in a forward operating base in Afghanistan and was paying something in the $200 a month range for $500,000 worth of coverage. His wife did her due diligence and found out she could get AD&D for $19 a month. He emailed and told me to cancel his coverage immediately, which I did, but with a fyi to check the new policy. I told him there are plenty of AD policies out there for that price, but none that I had ever heard of that would cover him world wide and absolutely none that would cover him for work in a war zone.
Believe me I understand that budgets are important and I would never recommend someone actually spend ten times more than they need to, but really let’s think this through. Pretend for a moment you are starting up a company or are even the CEO of a life insurance company that offers travel insurance, AD&D, and the like. Actuaries will tell you that the likelihood of a client needing one of those policies while they have it in force in fairly low so you price it fairly, about $20 a month. One day a young CEO wanna be comes to you and says there is a huge market in the expanding war zones of the middle East and Africa for civilian contractors who are willing to accept the risk for the reward of high, tax free pay. He thinks the company could double the cost to $40 and take over the market. At that price he has a friend in congress he thinks could get the government to require all companies employing civilian contractors in war zones to carry the product.
The CEO has been around a while and sees a good learning opportunity when it comes up, so he tells his wanna be to come back in a few weeks with actuarial data to back up his suppositions and they will talk further. So, with permission to use the company actuary team he lays it all out to them asking for quotes from the safest jobs like air traffic controllers on American held air bases to contractors hired to teach and supervise counter terrorism efforts in Iraq and some parts of Syria. He picked up the results and rushed them to the CEO and to his amazement the CEO said he would approve the products based on the actuarial findings. Those findings showed that the safest jobs available in the Middle East had a risk 5 times higher than a normal AD&D policy and for those counter terrorism guys it was 20 times the risk.
There is just no getting around the fact that those are dangerous places to work. The risk of death is higher and the risk of dismemberment is astronomically higher than a $19 a month policy. The client I suggested should read over his policy before taking off for the backwoods of Afghanistan didn’t get back to me. That’s kind of the way guys are. But he won’t be the one picking up the financial pieces if things don’t work out. Make sure you’re covered!!! If you have questions call or email us. We can help.
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