No-cost coverage: 6 free insurance policies

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Free accidental death and dismemberment insurance
Free accidental death and dismemberment insurance © Dmitry Kalinovsky/

Financial institutions -- particularly credit unions -- often provide customers with small amounts of free accidental death and dismemberment, or AD&D, insurance.

The accidental death part of an AD&D policy will pay your beneficiary if, say, you tumble down a mountain and are killed. The dismemberment feature will pay out if, for example, you lose a limb in a bad crash. AD&D coverage won't pay if you die of natural causes, including an illness.

Typically with these free accidental death and dismemberment policies, the credit union pays your premium to the insurance company underwriting the coverage. The complimentary policies tend to be modest, usually providing only $1,000 or $2,000 worth of coverage, which would not be enough to pay for a funeral or cover the hospital bill for a dismembering injury. The insurance carrier often will encourage you to buy higher levels of coverage at group rates.

The free insurance might extend only the credit union account holder. But the insurance company may offer supplemental coverage for your spouse and dependents.


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