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In a nutshell
Accidental death and dismemberment insurance is a supplemental insurance that covers you in case of accidental death or in the event of a dismemberment.
- AD&D tends to cover unlikely events, not natural deaths such as from old age or disease.
- It’s not a standalone policy, but supplemental insurance on top of your health or life insurance.
- Some coverage limitations apply and it’s not right for everyone.
What is AD&D insurance?
Accidental death and dismemberment insurance, or AD&D, is a type of supplemental life insurance you can purchase alongside a health or life insurance policy. It isn’t a replacement for regular health or life insurance, but something you can have alongside it.
What does AD&D insurance cover?
AD&D insurance covers you or your beneficiaries in case of an accidental death or dismemberment. This can include:
- Loss of a limb or limbs.
- Loss of your sight, hearing or speech.
- Permanent paralysis.
- Accidental death.
The definition of “accidental death” varies from insurer to insurer. A car accident could be covered, but if you’re driving under the influence of drugs or alcohol then you probably wouldn’t be covered.
What's not covered by AD&D insurance?
Accidental death and dismemberment can cover many forms of injury and accidental death, but it won’t cover everything. You may not be covered if:
- It’s a death by overdose or suicide.
- Dying of natural causes.
- Injuries you get while committing a crime.
- Accidents while under the influence.
- Accidents while participating in some recreational activities.
Some people might not qualify for AD&D due to the nature of their job. For instance, firefighters, law enforcement, and members of the military may not be eligible for extra accidental death and dismemberment insurance. While this isn’t the case for all insurers, you might run into this. It’s important to make sure you’re eligible for coverage before applying.
Pros:
- Covers gaps as supplemental insurance: Not all insurance covers all your needs. Having an umbrella policy that covers you in case of an emergency is important.
- Inexpensive premiums: AD&D isn’t full-coverage insurance, so you’ll pay relatively low premiums compared to regular life or health insurance.
- Quick payouts: You’re more likely to get paid faster with supplemental insurance than you are with traditional insurance.
Cons:
- Only specific incidents covered: If an accident or type of death isn’t outlined in your policy, it might not be covered and you won’t get a payout.
- You might not get paid: Because it’s unlikely that you’ll die from an accident or face dismemberment, you could end up paying for the insurance without getting any money from it.
- You could lose coverage: If you get AD&D through an employer-sponsored insurance program, you could lose it if you change jobs or industries.
What are the differences between life insurance and AD&D insurance?
Life insurance is considered a full insurance policy, similar to health insurance. AD&D is considered gap, supplemental or umbrella insurance. It covers specific incidents not directly outlined in your life insurance policy and can be added, usually as a supplement but sometimes as a separate policy.
You can purchase life insurance as a term, whole or universal policy, while AD&D insurance is typically a term-based policy.
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Having accidental death and dismemberment insurance might be a good idea for those who work in specific fields and want to have extra insurance in case of an emergency. But it’s not for everyone. You should also keep in mind that you’ll only get a payout in specific circ*mstances, so make sure you understand what is covered.
Frequently asked questions (FAQs)
Do I need both life insurance and AD&D?
While having life insurance might be a good idea for many people, having both life and AD&D insurance isn’t a requirement for most people.
Does accidental death and dismemberment cover broken bones?
No, accidental death and dismemberment won’t cover broken bones. This is typically covered through regular health insurance.
Is accidental death and dismemberment the same as disability insurance?
Disability insurance may have some of the coverage that AD&D has, but it’s not the same. Disability insurance covers you in case of all types of accidents, including illnesses and natural causes. AD&D has more limited coverage.
Can you combine AD&D and life insurance?
Yes, you can add AD&D to a life insurance policy, if your insurance company offers it as supplemental insurance or a rider.
AP Buyline’s content is created independently of The Associated Press newsroom. Our evaluations and opinions are not influenced by our advertising relationships, but we might earn commissions from our partners’ links in this content. Learn more about our policies and terms here.
