Accidental Death & Dismemberment Insurance
Accidental Death & Dismemberment Insurance (AD&D) is a type of life insurance that will pay a benefit for accidental death or dismemberment. This coverage can be purchased as a stand-alone policy or added as a rider to a standard life insurance policy. There are even some credit unions and banks that will offer a small amount of this insurance free to motivate you to become a customer.
The Death Benefit
The death benefit under the AD&D policy is payable if the insured dies as a result of an injury, not an illness. Depending on the policy, there is usually a time limit that death must occur within after the injury. Typically, claims are paid for a death resulting from a vehicle accident, fall, drowning, homicide or another event that was not the insured’s fault. Many companies will pay double the benefit if the accidental death results on a common carrier such as a taxi, bus, cruise ship or airplane. As with any life insurance policy there are usual exclusions such as :
- High-risk professions such as firefighters and police officers
- High-risk sports such as skydiving, drag racing or bungee jumping
- Suicide
Dismemberment Benefit
Today’s AD&D policies typically contain a benefit scale for dismemberment benefits :
- Loss of two or more body members – 100% of the policy benefit
- Partial or complete paralysis – 50% of the policy benefit
- Loss of one body member – 50% of the policy benefit
The loss of a member must be the result of an accident, not intentional and not a result of disease.
Although there are many AD&D companies on the market with many different products, the product is one of the most economical ways to insure and should be considered a part of every insurance portfolio. Contact us and discover the best plans that deliver the best value at the best price.