Except for specific exclusions mentioned in the policy, standard life insurance can pay out following the insured’s death regardless of the cause. The death benefit on this type of life insurance policy is “all cause.” While still a life insurance policy, accidental death, and dismemberment or AD&D insurance only pays to cover the accidental causes of death and injury specified in the policy. As a result, the primary distinction between AD&D insurance and life insurance is in the events that trigger the benefits of the policy.
What are Accidental Death and Dismemberment insurance?
An AD&D or accidental death and dismemberment insurance is a type of life insurance that pays out a benefit only if the insured is involved in an accident that is covered, which results in death or serious injuries such as amputation, paralysis, or blindness. AD&D coverage can be obtained as stand-alone insurance or as a rider to a normal life policy.
What is an AD&D rider?
A rider can be added to a regular life insurance policy to enhance your payout (up to double, depending on the policy) if you die as a result of a covered accident – and it can pay out a set amount while you are still living if you suffer an accident that results in a qualifying injury.
What does AD&D insurance cover?
The injuries and accidents for which your AD&D insurance coverage will pay will be outlined in the policy. Accidental dismemberment can encompass not only the loss of a limb but also major unintentional harm that stops you from working, depending on your policy. AD&D insurance may cover the following types of accidents:
- Car accidents
- Falls and other dangerous accidents
- Workplace injuries or death
- Accidents with firearms
- Fire-related injuries or fatalities
What is ADB (accidental death benefit) insurance?
Both ADB and AD&D life insurance plans pay out only in the event of an accident. The primary difference is that although an AD&D plan may also pay out in the event of accidental dismemberment and some accidental injuries, an ADB policy would only pay out in a fatal accident. Insurers may only provide one or both options.
What is not covered by AD&D insurance?
While AD&D insurance may protect accidental death and murder, many other causes of death and injury may be excluded, including:
- Specified recreational activities
- Accidents occurring under the influence of drugs or alcohol
- Natural causes or illness
To learn about the companies that offer disability insurance, talk to an expert today.