Accidental Death And Dismemberment Insurance
What Does Accidental Death And Dismemberment Insurance Mean?
Accidental Death and Dismemberment (AD&D) insurance is optional coverage that can be added to a health or life insurance policy. It provides benefits to policyholders who die as a result of an accident rather than natural causes or who suffer the loss of a limb or eyesight. In the case of accidental death, the policy may include a double indemnity clause, resulting in a payout of twice the death benefit. For dismemberment, the policyholder typically receives a partial benefit, the amount of which depends on the specific terms of the policy.
Insuranceopedia Explains Accidental Death And Dismemberment Insurance
Accidental Death and Dismemberment (AD&D) coverage may be particularly valuable for individuals in high-risk occupations. However, it is generally beneficial to a limited group of people. It is essential to carefully review the policy terms and conditions. For example, the policy may require that death occur within a specific timeframe after an accident or that the policyholder lose both limbs or eyesight in both eyes to qualify for the full benefit.
