AD&D Insurance FAQ
The Discover Insurance Center doesn't just offer insurance, it offers insurance education too. Get the answers to some of the most commonly asked insurance questions, so you can be empowered with information.
- What is AD&D insurance?
- AD&D (Accidental Death & Dismemberment) Insurance helps provide extra financial protection for you and your family in the event of a covered accidental death or injury. Benefit amounts generally range from $100,000 to $500,000 for an individual and may be written to cover a spouse and children as well.
- Who needs AD&D insurance?
- AD&D insurance is recommended for people who want to add efficient but inexpensive accident coverage to their existing life or health insurance coverage. Those working in high-risk professions such as in the construction industry may be especially interested in AD&D insurance. The same applies to people regularly involved in extreme or hazardous activities, such as bungee jumping, skydiving or extreme sports. Those who travel frequently also may benefit from purchasing AD&D insurance. Those individuals who don't work in high-risk jobs may still opt to buy an AD&D insurance policy for financial planning purposes or simply for peace of mind.
- How do insurance companies define "accidental death and dismemberment?" Or does it vary by insurer?
- Terms may vary between policies, but for the most part, insurers pay an "accidental death" benefit if an AD&D policy holder dies as the direct result of an accident. Insurers pay "dismemberment" benefits if a policy holder loses a limb or eyesight as a direct result of an accident. Loss of other key functions may be covered, depending on the policy.
- What does AD&D insurance cover?
- AD&D insurance will pay out in the event of a fatal accident or an accident that directly results in the loss Dismemberment coverage usually pays out half of the full benefit if a person loses one body part, such as a hand, foot, limb or sight in one eye. If two body parts are lost, coverage usually pays out the full benefit. AD&D insurance may also cover speech and hearing, triplegia (the paralysis of three extremities), paraplegia (paralysis characterized by loss of movement or feeling in the lower half of the body), hemiplegia (paralysis of one half of the body), the loss of a thumb and index finger of the same hand and a condition known as uniplegia, which is the complete and irreversible paralysis of one limb.
- What situations does AD&D insurance not cover?
- There are limits to AD&D insurance coverage. For example, many AD&D insurance policies do not pay out if a person dies during surgery, has a mental or physical illness, has a bacterial infection or has a hernia. AD&D insurance policies do not pay out if a person dies because of a drug overdose. The same holds true if a policy holder commits suicide, attempts to commit suicide or hurts himself or herself on purpose. The policy would also not pay out if a death or accident is a result of war.
- How does AD&D insurance differ from life insurance?
AD&D insurance pays out only in the event of an accident that directly causes the loss of life, a limb or eyesight. A typical life insurance policy, meanwhile, will pay a benefit to a beneficiary for most causes of death, within boundaries specified in the policy. For example, if a person driving a car has a heart attack and crashes a car while driving, many AD&D insurance policies would not pay out if the heart attack caused or contributed to the death. (If the driver did not have a heart attack and the car crashed causing death or dismemberment, the typical AD&D policy would pay out.)
While the AD&D policy would not pay out, if the driver also carried life insurance, his or her beneficiary would receive the death benefit from that policy.
- How much does an AD&D policy cost?
- The premiums for AD&D policies can cost as little as $60 per year, depending on the coverage. Keep in mind that an insurance company is going to consider a potential policy holder's past claims and history when setting the price for the policy, which is standard operating procedure for most insurance companies.
- How long should someone own an AD&D policy?
- Many AD&D policy holders hang onto their insurance coverage during their working years, depending on the type of business they are in.
- What should I look for when buying an AD&D policy?
- Study the language of the policy to determine what specific benefits you will receive and how much they will cost. While AD&D insurance usually covers a specific range, policies do vary from insurer to insurer.
