Accidental Death

AD&D is a rider that may come with certain life or health insurance policies. It covers the policyholder in case death occurs by accident (as opposed to a natural cause like disease), as well as dismemberment, which also includes losing the use of certain parts the body.

In the majority of cases, AD&D will pay double the usual coverage amount. Therefore, if the insurance policy provides for a $50,000 death benefit, it will pay out $100,000 in case of accidental death. In some cases, there will be a set amount of continuous monthly payments offered instead, which is called a double indemnity rider. Many employers that offer their workers a group health plan will also offer AD&D as an option.

If you have an AD&D rider on your policy, it is very important that you actually read all of its terms and exclusions. For example, in order to receive 100% of the amount provided for dismemberment, the injury that you suffer may need to involve losing two limbs or hearing in both ears, for example. In cases of accidental death, the death must occur within a specified period of time following the accident.

Take note that with injuries that cause dismemberment, there will be a schedule used by the insurer, which pays out a portion of the dismemberment coverage depending on the type and number of limbs lost. For example, the amount paid for losing hearing in one ear may be different than the amount for losing the use of one leg.