Why Offer Accidental Death or Dismemberment?
The protections under an accidental death and dismemberment plan will vary somewhat from policy to policy. Its defined coverage is against accidents that result in either death or very specific types of injuries. These accidents can happen just about anywhere, including the workplace, the home, the playing field, or during vacation travel. However, unless the policyholder is attempting a summit of K-2, the pursuit and the place are not likely to be a factor in determining coverage eligibility.
A covered injury typically includes the loss of limbs and/or fingers; loss of sight, hearing, and/or speech; and permanent paralysis.
Offer as a Supplement to Other Policies
AD&D should be considered as supplementing—not replacing—other kinds of insurance that serve to safeguard a beneficiary’s financial security in the event of a covered death or injury.
A traditional life insurance policy, for example, is far more comprehensive in terms of what would qualify for a death benefit to be paid out—including death from natural causes and illnesses as well as accidents. And in a similar vein, workers’ compensation and disability insurance aren’t limited to covering the loss of a body part or the explicit loss of a physical ability like vision; their coverage parameters are generally much broader.
These are some of the events that commonly are not covered under an AD&D policy:
- Death or injury by suicide or a suicide attempt
- Death or injury while under the influence of non-prescribed drugs or alcohol
- Death due to a physical illness
- An injury that’s intentionally inflicted