What is accidental death and dismemberment insurance?
Accidental death and dismemberment insurance (AD&D) is a type of insurance that provides a lump-sum payment to you or your beneficiaries if you’re involved in an accident that results in your death or a permanent injury that’s specifically covered in your policy.1
AD&D policies do not cover illnesses, or non-fatal accidental injuries that aren’t specifically covered by the policy. Typically, AD&D policies cover death, loss of vision, hearing, or speech, loss of a limb, or paralysis. The maximum payout is the face value of the policy, which is paid to the plan member’s beneficiaries if the accident results in death. A specified percentage of that amount (for example, 25 percent or 50 percent) would be paid for things like loss of eyesight or loss of a leg.
AD&D is not the same thing as accident insurance. Accident insurance is a supplemental policy that will pay a pre-determined amount when you incur medical costs due to an accidental injury. But unlike AD&D, the injury does not need to result in permanent damage in order to trigger a payout.
So for example, an accident insurance policy might reimburse you for some of your out-of-pocket costs stemming from an emergency room visit for a broken arm, even though the arm can be expected to fully recover. An AD&D policy, on the other hand, would not provide benefits in that situation (benefits could be payable under an AD&D policy if the arm were to require amputation, as that would result in a permanent loss of the limb).
Footnotes
- ”Life insurance vs. AD&D insurance” Progressive. Accessed Oct. 1, 2024 ⤶
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