What Is AD&D (Accidental Death and Dismemberment)?

Why it matters

AD&D is usually inexpensive because it covers a narrow set of events. It does not replace life insurance, since most deaths are caused by illness and not by accidents. Policies list exclusions, such as certain high-risk activities or intoxication, and these differ by carrier and state. AD&D is often offered through employers or as a rider on a life policy. Families should treat it as extra protection and check the exclusions and the schedule of benefits.

Source: naic.org

Related terms

Accidental Death Benefit Rider: An accidental death benefit rider pays an extra amount, often equal to the base death benefit, if the insured dies from a covered accident. It is added to a life insurance policy for a modest premium.
Rider: A rider is an optional add-on to an insurance policy or annuity that changes or adds benefits for an extra cost. It becomes part of the contract once attached.
Life Insurance: Life insurance is a contract in which an insurer agrees to pay a death benefit to named beneficiaries when the insured person dies, in exchange for premium payments. Policy types, prices, and features vary by carrier and state.
Death Benefit: A death benefit is the money a life insurance carrier pays to the beneficiary when the insured dies. It is usually paid as a lump sum and is generally income tax free to the beneficiary.
Group Life Insurance: Group life insurance is a single policy that covers many people, usually employees of one company or members of an association. The employer or group holds the master policy, and each member receives a certificate.

All 241 terms

Accidental Death and Dismemberment (AD&D)

Why it matters

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