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.