The definition of accidental death and dismemberment (AD&D) is that it is an insurance policy that pays full benefits to the beneficiary in the unlikely event of accidental death and a certain percentage of these benefits in case of dismemberment (the partial or complete loss of a limb, fingers, toes, sight, hearing, speech and partial or permanent paralysis).
AD&D is an insurance form similar to life insurance but less expensive. In case the insured has both a life insurance and a supplemental AD&D policy both coverages will be paid to the beneficiaries in case of a deadly accident. One can also opt for a so-called accidental death policy/rider on top of a life insurance policy, so that in case of an accidental death both benefits will be paid ; this is called “double indemnity”.
In the United States there are four distinct types of AD&D group plans available: Group Life Supplement, Voluntary, Travel Accident and Dependents.
The most important things to keep in mind when considering an accidental death and dismemberment insurance policy are :