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Accidental Death and Dismemberment Insurance (AD&D)

What Does Accidental Death and Dismemberment Insurance (AD&D) Mean?

Accidental death and dismemberment (AD&D) insurance is optional coverage added to a health or life insurance policy that pays out benefits for policyholders who die due to an accident as opposed to natural causes or who lose a bodily limb or eyesight. In case of the former, the coverage may call for a payment of double the death benefit, which is known as a double indemnity clause, while with the latter, the policyholder is generally entitled to partial amounts, depending on the policy.

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Insuranceopedia Explains Accidental Death and Dismemberment Insurance (AD&D)

Accidental death & dismemberment (AD&D) coverage may be important for those who may have dangerous occupations, but in general, it is only useful to a handful of people. Therefore, be sure to read the terms and details carefully. For instance, the rider may stipulate that death must occur within a certain time after an accident or that the policyholder must lose both sets of limbs or eyesight in both eyes to qualify for the full benefit.

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