What are Accidental Death and AD&D Insurance?

Important Elements of Accidental Death and AD&D Insurance

There are two types of accidental insurance policies offered - accidental death and accidental death & dismemberment (AD&D). While accidental death policies only pay out benefits in the case of death, AD&D policies generally pay benefits for the loss of limbs, fingers, sight, permanent paralysis, and death (the types of injuries covered and the amount paid vary by carrier and plan, and are explicitly enumerated in the insurance policy). These policies can be applied for as a separate type of policy or as a rider attached to another policy. In insurance jargon, a rider is basically an amendment or clause to a policy - it's basically added on later to adjust the coverage.

When you purchase accidental insurance, you are protecting yourself from the chance that you may be killed or seriously injured in an accident. These policies tend to have larger payouts than your average insurance policy because there is a bigger risk involved - the chances of you dying in an accident instead of from heart disease, cancer, or some similar health problem are much slimmer. However, if it does happen, your family may be in need of more money than you planned for with your standard life insurance policy.

For example, an Accidental Death (or an AD&D) policy would pay out if you were involved in a fatal car accident. Because the death was sudden and unexpected, your family could be suddenly left with enormous medical expenses, funeral costs, and all of the continuing debt you once shared. If you have standard life insurance, your beneficiary will receive the pay-out. However, if you have an Accidental Death (or AD&D) policy, then your beneficiary could receive as much as two or three times that amount.

A Few Facts about Accidental Insurance

Accidental Insurance can be a very smart purchase for some people, but you need to know what you're buying. Too many consumers ignore the fine print and their families end up without an expected payout due to a misunderstanding of what is covered by the policy. Accidental death and AD&D insurance policies typically include specific conditions that are spelled out for you so you'll know exactly when the policy will pay your beneficiary the anticipated benefits.

Conditions of most Accidental Insurance policies include:

Injuries or death must occur within a specified time frame from the accident date and must be a direct result of the accident
Accidental Insurance Coverage does not include death or injury due to surgery, mental or physical illness, or drug overdose
Dismemberment coverage (only offered in AD&D) offers a scheduled payout in the event of the loss of one member (a hand, foot, limb, or sight in one eye), generally with some plans a 100% payout is given for the loss of two members

Where do you find Accidental Insurance?

If you are ready to sign up for an Accidental Death or AD & D policy or rider, then contact your life and health insurance agent to discuss your options. If you have questions about accidental death insurance or AD&D, contact VitalOne, we can put you in contact with licensed insurance agents that are experienced in connecting consumers like yourself with the best plans for their needs.

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