Navy Federal Credit Union offering free $2K in AD&D insurance, does it make sense?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
Topic Author
schrute
Posts: 442
Joined: Wed Nov 05, 2014 1:27 pm

Navy Federal Credit Union offering free $2K in AD&D insurance, does it make sense?

Post by schrute »

NFCU (I'm part of) is offering free $2K in AD&D insurance at no cost. Not sure if others got one too. Something free sure seems nice. I don't read any terms that say I commit to something else? Thoughts here?
Last edited by schrute on Sun Aug 04, 2019 1:11 pm, edited 1 time in total.
User avatar
BL
Posts: 9874
Joined: Sun Mar 01, 2009 1:28 pm

Re: NFCU offering free $2K in AD&D insurance, does it make sense?

Post by BL »

Sure, why not? It is dirt cheap for them, and a good way to advertise. I wouldn't buy it, however.
User avatar
dm200
Posts: 23214
Joined: Mon Feb 26, 2007 1:21 pm
Location: Washington DC area

Re: NFCU offering free $2K in AD&D insurance, does it make sense?

Post by dm200 »

schrute wrote: Sun Nov 18, 2018 6:00 pm NFCU (I'm part of) is offering free $2K in AD&D insurance at no cost. Not sure if others got one too. Something free sure seems nice. I don't read any terms that say I commit to something else? Thoughts here?
No, this is OK - but of limited value. It only pays for accidental death or accidental dismemberment.

Credit Unions do this (and absorb the cost) because it is very inexpensive AND if you buy more, it is very profitable. The credit union or the insurance company can, then, also market other products to you since you are a "customer".
wootwoot
Posts: 670
Joined: Tue Jan 27, 2009 6:37 pm

Re: NFCU offering free $2K in AD&D insurance, does it make sense?

Post by wootwoot »

I'm also an NFCU member. Where did you see this offer? :D
tomd37
Posts: 4098
Joined: Thu Mar 01, 2007 9:39 pm
Location: Middle Tennessee

Re: NFCU offering free $2K in AD&D insurance, does it make sense?

Post by tomd37 »

This AD&D offer from NFCU is nothing new. It is automatic with a membership at NFCU. It has been around for many, many years. At least 18 according to my insurance records.
Tom D.
wootwoot
Posts: 670
Joined: Tue Jan 27, 2009 6:37 pm

Re: NFCU offering free $2K in AD&D insurance, does it make sense?

Post by wootwoot »

I signed up with NFCU in the last 6 months and had never heard of this benefit. For anyone interested login to NFCU and click through their insurance products, signing up takes just a few minutes. Thank you for the heads up OP!
Topic Author
schrute
Posts: 442
Joined: Wed Nov 05, 2014 1:27 pm

Re: NFCU offering free $2K in AD&D insurance, does it make sense?

Post by schrute »

dm200 wrote: Sun Nov 18, 2018 6:46 pm
schrute wrote: Sun Nov 18, 2018 6:00 pm NFCU (I'm part of) is offering free $2K in AD&D insurance at no cost. Not sure if others got one too. Something free sure seems nice. I don't read any terms that say I commit to something else? Thoughts here?
No, this is OK - but of limited value. It only pays for accidental death or accidental dismemberment.

Credit Unions do this (and absorb the cost) because it is very inexpensive AND if you buy more, it is very profitable. The credit union or the insurance company can, then, also market other products to you since you are a "customer".
I thought it seemed like a good free insurance should something happening. It basically costs nothing.
tomd37 wrote: Sun Nov 18, 2018 7:31 pm This AD&D offer from NFCU is nothing new. It is automatic with a membership at NFCU. It has been around for many, many years. At least 18 according to my insurance records.
Have you signed up for it?
tomd37
Posts: 4098
Joined: Thu Mar 01, 2007 9:39 pm
Location: Middle Tennessee

Re: NFCU offering free $2K in AD&D insurance, does it make sense?

Post by tomd37 »

Schrute - Yes, I have signed up for it and have a certificate issued in October 2003 from the CUNA Mutual Insurance Society, PO Box 61, Waverly, IA 50677-0061 for myself and my wife as members of the Navy Federal Credit Union. I should note that the Group Accidental Death and Dismemberment Policy coverage is $2,000 while under age 70 and $1,000 age 70 and over.
Tom D.
Topic Author
schrute
Posts: 442
Joined: Wed Nov 05, 2014 1:27 pm

Re: NFCU offering free $2K in AD&D insurance, does it make sense?

Post by schrute »

tomd37 wrote: Tue Nov 20, 2018 2:26 pm Schrute - Yes, I have signed up for it and have a certificate issued in October 2003 from the CUNA Mutual Insurance Society, PO Box 61, Waverly, IA 50677-0061 for myself and my wife as members of the Navy Federal Credit Union. I should note that the Group Accidental Death and Dismemberment Policy coverage is $2,000 while under age 70 and $1,000 age 70 and over.
I got another one, but haven't signed up yet. Only concern is if they one day decide to then make you pay for it. But I can't imagine once it's signed they change the terms?
talzara
Posts: 4745
Joined: Thu Feb 12, 2009 6:40 pm

Re: NFCU offering free $2K in AD&D insurance, does it make sense?

Post by talzara »

dm200 wrote: Sun Nov 18, 2018 6:46 pm Credit Unions do this (and absorb the cost) because it is very inexpensive AND if you buy more, it is very profitable. The credit union or the insurance company can, then, also market other products to you since you are a "customer".
$2000 of AD&D insurance is worth about 50 cents a year.

The credit union would be paying even less, because a lot of valid claims on these small policies never get filed.

It's a cheap form of marketing. The credit union spends more than that on postage to mail the account statements.
pdavi21
Posts: 1296
Joined: Sat Jan 30, 2016 3:04 pm

Re: NFCU offering free $2K in AD&D insurance, does it make sense?

Post by pdavi21 »

Wells Fargo sold me that when I was severely sleep deprived. I never knew I had it until they started debiting my account. Eventually, over the next decade, they paid me back.
"We spend a great deal of time studying history, which, let's face it, is mostly the history of stupidity." -Stephen Hawking
User avatar
dm200
Posts: 23214
Joined: Mon Feb 26, 2007 1:21 pm
Location: Washington DC area

Re: NFCU offering free $2K in AD&D insurance, does it make sense?

Post by dm200 »

talzara wrote: Sat Apr 27, 2019 8:01 pm
dm200 wrote: Sun Nov 18, 2018 6:46 pm Credit Unions do this (and absorb the cost) because it is very inexpensive AND if you buy more, it is very profitable. The credit union or the insurance company can, then, also market other products to you since you are a "customer".
$2000 of AD&D insurance is worth about 50 cents a year.
The credit union would be paying even less, because a lot of valid claims on these small policies never get filed.
It's a cheap form of marketing. The credit union spends more than that on postage to mail the account statements.
Yes!

It also "pays for itself" if the insurance company gets almost any additional insurance business from you - life, disability, auto, homeowners, etc.
Post Reply