Voluntary Accidental Death and Dismemberment (AD&D) insurance (VAD&D)

Definition - What does Voluntary Accidental Death and Dismemberment (AD&D) insurance (VAD&D) mean?

Voluntary accidental death and dismemberment (VAD&D) insurance policies are policies that pay benefits if the policyholder dies or suffers from dismemberment because of an accident. Many organizations offer these policies to their employees as a separate, elective benefit. Employees who opt for this benefit will usually pay for the premiums via a payroll deduction. It is worth noting that in the event that the policyholder dies in an accident, the insurer will pay benefits to the named beneficiary in addition to any life insurance held by the policyholder. However, in case the policyholder loses a bodily appendage or sight because of an accident, the insurer will pay fractional amounts of the policy as benefits.

Insuranceopedia explains Voluntary Accidental Death and Dismemberment (AD&D) insurance (VAD&D)

In the United States, insurance companies usually offer three kinds of group AD&D plans:

  • Group life supplements that include the AD&D benefit as part of a group life insurance contract
  • Travel accident supplements that provide the AD&D benefit along with accident protection to employees when they travel on work-related purposes and,
  • Voluntary accidental death and dismemberment (VAD&D) protection that employees can opt for as a separate, elective benefit

The benefits payable will vary based on the type of claim filed. It is worth noting that these insurance policies are ideal for workers engaged in occupations that place them at high risk of suffering physical injury.

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