Accidental death & dismemberment insurance is a supplemental insurance policy that someone can add as an extra to a health or life insurance policy. The policy gives coverage in the event of accidental death or dismemberment of the insured.
Because of the differences and limitations in coverage, prospective buyers need to review the terms of an AD&D insurance policy carefully. For instance, a 24-hour AD&D insurance policy may offer coverage options such as employee only, employee and children only, employee and spouse only, or entire family coverage. Also, it may cover only specific, unlikely events, and no one should use it as a replacement for comprehensive term life insurance.
How Does an Accidental Death & Dismemberment Rider Work?
By adding an AD&D rider (also called a “double indemnity” rider), the designated beneficiaries will benefit from both policies in case of the insured’s accidental death. However, there is likely a limit on the maximum amount payable, which varies depending on the insurer.
In most cases, AD&D insurance payments match the original life insurance policy’s face value, and in the possibility of accidental death, the beneficiary receives a benefit twice that amount.
What Is Considered Accidental Death?
Insurance companies define accidental death as an event that occurs within a specific period following a fatal accident. Accidental deaths include fatalities resulting from car accidents, choking, slips, drowning, machinery mishaps, and other similar situations.
Dismemberment
Most AD&D policies offer partial payment for various injuries, such as limb loss, permanent or partial paralysis, or the loss of specific body functions, such as sight, hearing, or speech. However, each policy’s coverage extent and injury types depend on the insurer and policy specifications.
A policy does not often provide full payment of the policy amount for an injury that does not involve a combination of significant bodily function loss and limb loss.
Different Kinds of Accidental Death Benefit Plans
Voluntary
Members of a group receive the plan as a separate option. If offered by an employer, the premiums for the plan are the employee’s responsibility and are usually deducted from their paycheck regularly. They receive benefits from voluntary accident insurance, regardless of whether the insured party is at work.
Group Life Supplement
A group accidental death benefit plan typically supplements a group life insurance policy provided by the employer. The benefit amount for accidental death is usually the same as the group life benefit.
Dependents
Accidental death benefit plans may also include coverage for dependents of a worker, potentially a family member, who relies on their income to cover expenses. Enrolling in an accidental death benefit plan could be a wise decision.
Travel Accident
This arrangement comes through an employee benefit plan, which provides additional accident protection to workers while conducting company business. Unlike voluntary accident insurance, the employer fully funds this coverage.
About Provident Insurance Programs
With roots dating back to 1902, Provident Insurance Programs is a program administrator that serves paid and volunteer firefighters in addition to emergency medical responders with numerous custom-tailored insurance programs. We’ve also extended our expertise and experience to offer benefit plans and coverages to participant groups as well as Transportation Benefits. We are committed to continuing to provide superior customer service, and would be happy to speak with you to provide further information. Give us a call today at (855) 201-8880 to speak with one of our representatives.