How Accidental Death & Dismemberment Insurance Works

If you’d like to take out a AD&D policy, first decide if you’d like it as a stand-alone policy or as an add-on (aka a rider) to an existing life or health insurance policy. Some travel insurance policies, such as Redpoint’s, may also offer accidental death and dismemberment insurance.

Once you’ve decided, you’ll need to submit an application and provide details about your lifestyle and health. Your premium may be influenced by various factors, such as your age, underlying health, and any other risk factors. Fortunately, in most cases no medical exam is required, and premiums can suit a range of budgets.

Once insured, your family members will be able to make a claim if you experience an accidental death or injury resulting in dismemberment.

What Is Covered by Accidental Death & Dismemberment Insurance

In order for an accident to be covered, it has to directly cause the insured person’s death or dismemberment. This might include a car accident, a homicide, a fall from a staircase, a mishap on a hike, or an accident involving heavy machinery. The coverage benefits paid usually include the following:

• Death that directly results from an accident
• Loss of a body part due to an accident
• Loss of senses or sensory perception
• Disability or immobility

What Is Not Covered by Accidental Death & Dismemberment Insurance

There are quite a few exclusions and limitations on a typical AD&D policy, so it’s important to be aware of them. The following events usually aren’t considered a covered accident:

• Dying from a natural cause, an illness, or a heart attack
• Dying from a virus or infectious disease
• Death that occurs amidst or as a result of committing criminal activity
• Substance-related deaths, like an overdose from drugs or drunk driving
• Death caused by high-risk recreational activities
• Death by suicide
• Death or injury from war, armed conflict, or terrorism

Things to Know About Accidental Death & Dismemberment Insurance

Accidental death and dismemberment policies do tend to have a lot of exclusions and limitations, so make sure you consult the fine print of your policy to learn more.
If any of your frequent or planned activities (say, skydiving or bungee jumping) are listed as exclusions, you won’t be covered in the event that your death or injury results from one of those activities. It’s important to keep that in mind when deciding if an AD&D policy is worth it for you.

Tips for Selecting an Accidental Death & Dismemberment Insurance Policy

Here are some factors to keep in mind when shopping for an AD&D policy:

• Cost of premiums
• Any common exclusions or limitations on the policy
• The policy terms, and how it defines an accidental death
• If any of the activities you regularly do are considered exclusions
• How much the benefit coverage is for

Once you’ve narrowed it down to a specific policy, ask yourself:

• Does it provide adequate benefits equal to your potential loss of income?
• Does it have any exclusions you may actually need coverage for?
• Does it add onto your existing life insurance or health insurance policy?
• Will your beneficiary be able to benefit from both your life insurance and AD&D policy in the event of your death?
• Is it possible you can take out this coverage via your employer?