Accidental Death and Dismemberment (AD&D) Insurance
- AD&D is used to pay you or your beneficiaries a set amount of money should your death or dismemberment is the direct result of an accident. A fatal accident, or an accident resulting in the loss of your eyesight, hearing, speech or limb, a specified amount will be provided to you or your beneficiaries by AD&D.
- In the event of a fatal accident or accident resulting in dismemberment, the death or dismemberment must be proven to be a direct result of the accident, and within a few months of the accident date.
- Dismemberment is covered for on a “per-member,” basis. Should you lose one member (a hand, a foot, a limb, loss of sigh in one eye, speech or hearing), your policy will usually pay 50 percent of the full benefit. The full benefit is the payment for the whole two members lost. For partial or complete paralysis, coverage varies, but typically is found between 25 or 50 percent.
- Optional coverages may include hospital stay after an accident, and spousal and child coverage. AD&D typically does not cover death during surgery, death resulting from a mental or physical illness, bacterial infections/hernia, or drug overdose. Many AD&D policies do not cover for death or dismemberment resulting from risky activities such as skydiving, car racing and involvement in war.