Accidental Death and Dismemberment (AD&D) Insurance

If you have a high-risk job and a life insurance policy in place, then consider added AD&D (Accidental Death and Dismemberment) insurance to your policy. The accidental death and dismemberment policy is added as a rider covering dismemberment or unintentional death of the insured. Remember that AD&D is not a replacement for your life insurance policy but an add-on. When added to the life insurance policy, the beneficiaries will benefit from the insured’s accidental death.

For instance, if you have a life insurance policy of $200,000 with an AD&D, and if you get killed accidentally, your beneficiaries will get $400,000 for the death benefit. It is also known as double indemnity.

The benefits are the AD&D policy is limited and doesn’t exceed a certain amount as the insurer cap payable amount. However, as the AD&D insurance payment mirrors the face value of your original life insurance policy, the beneficiary will receive a benefit that is twice the amount of the face value of the life insurance policy upon the insured’s accidental death.

Dismemberment

Most Accidental Death and Dismemberment policies pay a certain amount percentage for the dismemberment of the insured. Dismemberment includes the loss—or the loss of use—of body parts or functions such as:

• Limbs
• Speech
• Eyesight
• Hearing

The coverage extent and type of injuries are defined in the policy. Hence, the injuries and losses are covered accordingly.

Benefits of an Accidental Death and Dismemberment (AD&D) Insurance

There are many ways insured and beneficiaries can benefit from AD&D. The policy can protect your family’s finances in the event of the loss of your limbs or life. It is an affordable way to supplement your medical coverage and life insurance if you are injured severely or die accidentally.

The death benefit adds peace of mind as it lessens that burden. Also, as the loss of income is carried forward, the Accidental Death and Dismemberment policies offer a death benefit along with the death benefit provided through the traditional life insurance policy of the insured. Therefore the benefit doubles.

However, it doesn’t cover the following death during surgery, resulting from physical and mental illness, bacterial infection, skydiving, car racing, war, drunk driving, drug overdose, and hernia.

Talk to our insurance agent today before buying AD&D. We can guide and help evaluate your options and find the best policy.