While its name may sound like something out of a horror movie, accidental death, and dismemberment insurance also known as AD&D insurance can provide additional benefits if an unfortunate situation should occur.
So What is Accidental Death And Dismemberment Insurance (AD&D)?
Accidental death and dismemberment insurance is typically an add-on or rider to a life or health insurance policy. It was created to cover an unintentional death or dismemberment of the insured. Dismemberment includes the loss, of or the loss of use, of body parts or functions like arms, legs, speech, eyesight, or hearing.
The AD&D policy includes a schedule that describes the terms and percentages of the several benefits and covered special circumstances. Let’s say the insured dies from injuries caused by accident, and the death must happen within a specified time for benefits to be paid.
Accidental Death Explained
The designated beneficiaries get benefits from both the life insurance and AD&D in the event the insured dies accidentally. Benefits typically cannot exceed a certain amount, and therefore most insurers cap the amount payable under these conditions. Generally, AD&D payments reflect the face value of the original life insurance policy, giving the beneficiary a benefit that is twice the amount of the life insurance policy’s face value in the event the insured dies accidentally.
Extraordinary events, such as exposure to the elements, traffic accidents, homicide, falls, drowning, and accidents involving heavy equipment fall under what accident death typically covers.
Usually, the AD&D policy will pay a certain amount for losing an arm or leg, becoming partially or permanently paralyzed or the loss of use of specific body parts, required for sight, hearing, or speech. The types and range of injuries covered are up to and defined by each insurance carrier and policy. Typically a combination of the loss of a limb and the loss of a primary bodily function, such as sight in one eye, or hearing in at least one ear for the policy to pay the full amount.
For more information on personal accident insurance, give Blake Insurance Group a call today.