Accidental death and dismemberment insurance

In insurance, an accidental death and dismemberment (AD&D) policy provides financial benefits to the insured or their beneficiaries in the event of accidental death, serious injury, or dismemberment resulting from an accident.

Unlike traditional life insurance, which only pays out in the event of death, AD&D insurance provides additional coverage in case the insured experiences a serious injury or loses a limb or other body part due to an accident.

The benefits paid out by an AD&D policy can help cover medical expenses, rehabilitation costs, and other expenses associated with an accidental injury. They can also provide financial assistance to the insured's family in the event of accidental death.

Accidental death

In the event of an accidental death, this insurance will pay benefits in addition to any life insurance but only up to a set amount total regardless of any other insurance held by same insurer, held by the client. This is called double indemnity coverage and is often available even when accidental death insurance is merely an add-on to a regular life insurance plan. Some of the covered accidents include traffic accidents, exposure, homicide, falls, heavy equipment accidents and drowning. Accidental deaths are the fifth leading cause of death in the U.S. as well as in Canada.

Accidental death insurance is not an investment vehicle and thus clients are paying only for sustained protection. Most policies have to be renewed periodically (with revised terms), although the client's consent with renewal is often implicitly assumed.