Accidental Death & Dismemberment Insurance Quotes
Accidental Death & Dismemberment (AD&D) Insurance is usually offered as part of an employer-sponsored or group health insurance plans yet it is becoming increasingly available for individuals separately or as part of a rider on a basic health or life insurance policy.
AD&D Insurance provides a specified amount for loss of life or limb by accidental means that is paid in addition to other life or health insurance pay-outs. In most cases, a Principal Sum (lump sum) is paid in the event of the insured's death, and a Capital Sum (some percentage of the Principal Sum) is paid out for dismemberment. Capital Sum percentages vary from policy to policy, but may pay something like 50% for loss of one limb (at or above the joint) or loss of sight in one eye (by accidental means) and 100% for loss of two limbs or loss of sight in both eyes.
What Accidental Death & Dismemberment Insurance Is Not
Accidental Death & Dismemberment Insurance is not a substitute for basic life or health insurance, or for Workers' Compensation Insurance. Rather, it is an added layer of protection if death or serious bodily injury occurs as a result of an accident.
It usually doesn't compensate for disabling or paralyzing back injuries, or for death or dismemberment that results from natural causes or disease.
Who Needs Accidental Death & Dismemberment Insurance?
Many businesses offer AD&D coverage as an additional health insurance benefit to their employees. It is especially common for employees who travel often as part of the job. Some credit card companies and credit unions offer AD&D insurance to their customers.
Accidents are the leading cause of death for people under age 35, so AD&D insurance often makes more sense for young people than it does for older individuals. Young people in high-risk jobs or who engage in extreme sports are likely candidates for additional coverage, but they may have to pay higher premiums to account for the greater risk of injury.
Things To Think About
With AD&D insurance it is very important to read the fine print. Companies vary widely in how they define "accidental" and how they define "dismemberment." Is death or loss of a limb by a surgical accident covered? What if someone suffers a heart attack while driving? In most cases, that isn't covered.
Some companies impose a time limit from the date of the accident by which the death or dismemberment has to happen. Sometimes it's three months, so if the injured person is in a coma for six months following the accident, then dies or loses a limb, coverage may not apply.
It's also a good idea to find out if the company requires an additional medical exam. Most group policies won't, but individual policies may. Some companies will pay an additional benefit if death or dismemberment happens while the insured is wearing a seat belt or driving in a car equipped with air bags.
Some companies offer a special type of AD&D policy that guarantees to pay off your mortgage if you're in a serious accident that takes your life, a limb, or your sight. Others offer AD&D insurance that only covers accidents in common carriers like airplanes, trains, busses, and ships.
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