What is an accidental death and dismemberment insurance (AD & D)?

Few people understand the complexity of life insurance and its proper use.  There are numerous policies that can be bought if you have the money and you meet the requirements. Besides policies, you can attach a series of riders and customize them even more. Even life insurance without medical examination can be customized. A commonly chosen rider is accidental death and dismemberment insurance (AD&D). In this blog post we will explain what is an accidental daccidental death and dismemberment insuranceeath and insurance (AD&D) rider and how to use it.

AD&D, as the name suggests, is a rider attached to a life or health insurance policy and it covers death caused by accidental means (not by natural causes) and dismemberment (loss of certain body parts or senses like hearing or eyesight).  This rider is typically named “double indemnity” rider, because it is typically written in such a manner that the insurer will pay double the amount payable otherwise. Accidental death portion is the main part of the policy rider, while dismemberment portion is supplementary to it.

Dismemberment is defined by companies as the loss of a limb (arm, leg, hand, fingers), of a sense (hearing or eyesight) or paralysis.  If an accident results in direct loss of a limb, sense or paralysis, the insurer will pay the benefit amount. Full benefit is paid if the insured dies in an accident. If the accident results in loss of a limb, the insured will receive 50% benefit payout.

But, if two or more limbs are lost, the insured will receive full benefit. For partial or full paralysis, the amounts differ. This is why we advise you to carefully read the contract before you sign in.  We also recommend you to search for life insurance quotes and compare all prices.

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