Voluntary Accidental Death And Dismemberment (AD&D) Insurance
What Does Voluntary Accidental Death And Dismemberment (AD&D) Insurance Mean?
Voluntary accidental death and dismemberment (VAD&D) insurance policies provide benefits if the policyholder dies or experiences dismemberment due to an accident. Many organizations offer these policies to employees as an optional benefit. Employees who choose this coverage typically pay the premiums through payroll deductions. Notably, if 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. Conversely, if the policyholder loses a bodily appendage or their sight as a result of an accident, the insurer will pay a proportional amount of the policy as benefits.
Insuranceopedia Explains Voluntary Accidental Death And Dismemberment (AD&D) Insurance
In the United States, insurance companies typically offer three types of group AD&D plans:
- Group Life Supplements: These include AD&D benefits as part of a group life insurance contract.
- Travel Accident Supplements: These provide AD&D benefits along with accident protection for employees traveling for work-related purposes.
- Voluntary Accidental Death and Dismemberment (VAD&D): This is an optional, standalone benefit that employees can choose.
The benefits payable depend on the type of claim filed. Notably, these insurance policies are particularly suitable for workers in occupations with a high risk of physical injury.
