Accidental Death and Dismemberment (AD&D) insurance pays a separate fixed benefit for specific accidental death and severe injury events.
It is usually not a full substitute for life insurance. AD&D and life coverage overlap in some circumstances, but they settle under different definitions.
Insurance mechanics
- Benefit payment is tied to qualifying injuries, such as complete dismemberment or death from accident.
- AD&D schedules often include percentage-based payouts rather than full replacement value.
- Exclusions commonly include war, suicide, and substance-related conduct.
Claims and underwriting
Claims handlers require proof of accident causation and medical documentation at the event.
Underwriting reviews risk class, occupation, and pre-existing medical limitations before issuing riders.
Practical scenario
If a policy includes a 100% death rider and a 50% policy for amputation, a severe accidental injury triggers the rider at the corresponding scale. Life policy settlement may still occur separately if death is not accidental.