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Insurance.com is dedicated to informing, educating, and empowering you to make confident insurance decisions. Our content is carefully reviewed by insurance experts, and we rely on a data-driven approach to create unbiased, accurate insurance recommendations. Insurance.com maintains editorial integrity through strict independence from insurance companies.  Accidental death and dismemberment insurance (AD&D) can help your family if the unthinkable happens. AD&D coverage kicks in if you die in a fatal accident or become disabled. There are exemptions, though. Many companies offer their employees free AD&D insurance as part of their benefits package. These policies provide assistance, but it's often for smaller coverage than if you bought an AD&D insurance policy yourself. Let's take a look at AD&D insurance, what it covers, what it doesn't cover and how to get a policy. KEY TAKEAWAYS
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What is AD&D insurance?AD&D insurance pays the insured or your beneficiaries a set amount of money if your death or dismemberment is the result of an accident. AD&D is a limited form of insurance that covers only accidents. However, there are coverage restrictions that make accidental death and dismemberment insurance far less useful than life insurance policies. You can also add an accidental death rider to your life insurance. If, for example, you have a $100,000 life insurance policy and you add an accidental death rider and you're killed in a covered accident, your beneficiaries would get $200,000 for the death benefit. The fact that it can pay twice as much as normal is why it's sometimes called "double indemnity." You shouldn't consider AD&D insurance as a replacement for life insurance. AD&D coverage is limited to accidents and it doesn't provide the kind of coverage you find in life insurance. AD&D is also not a replacement for disability insurance. How does AD&D insurance work?Accidental death and dismemberment insurance helps pay a lump sum in the event of a covered accident. “Specifically, these covered accidents are incidents that could not be foreseen and are fatal or dismembering,” says Mark Friedlander, director of corporate communications for the Insurance Information Institute in St. Johns, Florida. Accidents involving work-related machinery, poisoning, falls, suffocation, choking, drowning, and fires are generally covered by an AD&D policy. Your policy also may cover dismemberment (partial or total loss of a hand, arm, or other body part), paralysis, and the loss of sight, speech, or hearing. Per Friedlander, AD&D also safeguards in the event of injuries or death that result from an accident that occurs while riding on a bus, train, commercial airplane, ferry, cruise ship, taxi, or other common transport. AD&D benefits are typically paid in full in a single payment. After processing an AD&D claim, your insurance carrier will pay out the coverage amount in one lump sum payment. “That means you or your loved ones will get all the money at once when it is needed most – without having to wait,” Friedlander says. AD&D insurance also may provide compensation called “living benefits” for injuries suffered in particular types of accidents. For example, if you lose one limb, you may qualify for 50% of your policy coverage amount. If two or more limbs are lost, you might be eligible for 100% of your policy coverage amount. Additionally, the amount paid to you as living benefits may not be deducted from your policy’s coverage amount, which can remain in full effect to help cover future injuries or death. Other coverage detailsIf a fatal accident or an accident results in you losing your eyesight, speech, hearing or a limb, AD&D will pay you or your beneficiaries a specified amount. However, there are restrictions and exclusions. Your injuries or death usually must occur within a few months of the accident date to receive benefits related to an accident. Also, you will only collect benefits if your death or injuries are proven, direct results of the accident. Optional coverages sometimes include hospital stay coverage due to an accident and spouse and child AD&D coverage. What does AD&D insurance cover?If a fatal accident or an accident results in you losing your eyesight, speech, hearing or a limb, AD&D will pay you or your beneficiaries a specified amount. However, there are restrictions and exclusions. Your injuries or death usually must occur within a few months of the accident date to receive benefits related to an accident. Also, you will only collect benefits if your death or injuries are proven, direct results of the accident. Dismemberment coverage works on a "per-member" basis. If you lose one member (a hand, foot, limb, sight in one eye, speech or hearing), the insurance company will usually pay 50% of the full benefit. If you lose two members, you will receive the whole benefit. Coverage amounts for partial or complete paralysis vary but are usually 25 or 50%. Optional coverages sometimes include hospital stay coverage due to an accident and spouse and child AD&D coverage. What does AD&D insurance not cover?Typical exclusions of AD&D coverage include:
Make sure to read the fine print when applying for AD&D coverage. How is AD&D coverage determined?Coverage limits for AD&D policies are set by the plan provider. AD&D plans can include a benefit reduction schedule based on age (which can vary by plan). According to Friedlander, typical limits are:
How do you qualify for AD&D insurance?Typically, AD&D insurance is provided as part of a comprehensive employee benefits package given to workers at no cost to the employee. TIP“More than 80% of US employers offer this benefit to their staff. However, if a company plan does not cover you, you can shop for individual coverage through an insurance professional who can provide you with multiple quotes from various insurers,” Friedlander says. “AD&D can also be sold as an endorsement or rider to a life insurance policy that doubles the death benefit paid to your survivors if you die due to an accident.” To be eligible for AD&D benefits, you must be an active plan participant with earned eligibility at the time of your loss. Your AD&D coverage expires when you lose this earned eligibility. For example, AD&D benefits are not available if you are a former employee on COBRA coverage, nor are these benefits available to dependents. “Anyone should qualify for this type of policy so long as they are between the ages of 18 and either 70 or 80, depending on the carrier,” says Amber Benka, an insurance agent with California Commercial Insurance. Joshua Romo, an independent insurance broker in Surprise, Arizona, agrees that “the only disqualification I have run into is based on age. Most carriers won’t cover anyone over the age of 70.” What are the typical exclusions in AD&D policies?Friedlander says standard exclusions in AD&D policies include:
Where to buy AD&D insuranceYou can generally purchase accidental death and dismemberment insurance as a separate policy or rider (endorsement) on a life insurance policy. Major insurers typically issue AD&D policies and can also be purchased through credit card offers or credit unions. Some life insurance companies may include or offer AD&D in their group insurance plans. What does AD&D insurance cost?Depending on the amount of coverage purchased and the benefits it provides, AD&D insurance premiums can cost as little as $60 per year. The low cost of accidental death and dismemberment insurance also means it doesn't provide much benefit. In fact, it usually only offers a small amount of peace of mind. It's generally more cost-effective to put the money you'd be paying toward the premium into a standard life policy or other insurance policy instead. Also, employers often offer AD&D insurance as a part of their benefits package. These group policies usually have lower benefits than individual policies. They're often limited to employees, so they're nice to have for that price, but you lose that coverage when you change jobs or if the employer drops it. Will AD&D insurance really help?An AD&D policy may be a good idea, especially if you work in a high-risk job. People with riskier jobs pay higher premiums than people with low-risk employment. Supplemental AD&D coverage could be a wise investment regardless, but understand that AD&D doesn't cover you for any type of death or dismemberment. You should still have life insurance to cover you in case of death. If you're concerned about becoming disabled, you should get a separate disability insurance policy, so you're assured you'll receive benefits if you're unable to work. Think of AD&D insurance as a supplemental policy to your life and disability insurance policies. Supplemental AD&D can play a critical role, but it's wise to think of it as added protection rather than solely relying on AD&D coverage. An insurance policy with accidental death and dismemberment coverage comes with several advantages and disadvantages. AD&D coverage prosOn the positive side, it provides financial assistance after accidental death or loss of one or more limbs, supplementing income loss after one of these events occurs. It also costs less than traditional life insurance. "This coverage is cheap in comparison to conventional life insurance and is often offered at little or no cost as part of an employer-sponsored benefits package," notes Brian Martucci, the Minneapolis-based finance editor for Money Crashers. What's more, there is no medical exam required for AD&D coverage and no waiting period involved before the coverage takes effect. "Also, benefits are payable for losses that occur within 365 days of the covered accident," says Friedlander. "And a variety of options are available to choose from, including high coverage limits." AD&D insurance consOn the downside, an AD&D policy only pays for certain events specifically listed in the policy. In other words, most deaths don't qualify as accidental. "In this sense, it can provide a false sense of security if you lack adequate life insurance coverage. If you get your policy from your employer, the coverage will also end when you stop working for that employer," cautions Linda Chavez, the Los Angeles-based founder/CEO of Seniors Life Insurance Finder. Additionally, depending on the AD&D insurance plan, your policy can include a benefit reduction schedule based on age. "For example, your benefits may be reduced by 35% once you reach age 65 and up to 85% by age 80," Friedlander adds. Are there additional accidental death and dismemberment insurance benefits?An accidental death and dismemberment policy can serve as a nice supplement to term or permanent life insurance coverage. But additional benefits may apply, too. First, your policy may also provide living benefits compensation for injuries incurred due to particular types of accidents, like paralysis, loss of a foot, hand, leg, or arm, and blindness. "If you lose one limb, you may qualify for 50% of your policy coverage amount. If two or more limbs were lost, you may qualify for 100% of your policy coverage amount," says Friedlander. "Also, the amount paid to you as living benefits may not be deducted from your policy's coverage amount, which may remain in full effect to help cover future injuries or death." You may also qualify for up to triple payout on common carrier accidents. "If you are injured or killed in an accident while riding as a fare-paying passenger on a bus, train, commercial airplane, ferry, cruise ship, taxi, or another type of common carrier, you may be entitled to double or even triple the coverage amount of your AD&D policy," Friedlander continues. Note that some insurers provide an extra payout if you were wearing a seat belt during an accident that ended in death or injury. "Additional benefits may also be provided to help your children pay for higher education, and counseling, legal, and financial advice for beneficiaries may also be an included extra benefit for a surviving spouse," says Chavez. Some insurers offer other optional benefits as part of an enhanced AD&D plan, too, including benefits for:
Who should get accidental death and dismemberment insurance?While anyone may benefit from AD&D coverage, good candidates include those who have jobs or pastimes that involve higher risk. "People with risky hobbies or occupations are more likely to die or suffer serious injuries and accidents that are covered by AD&D policies," explains Martucci. Got a beneficiary like a spouse and/or children who may be vulnerable to financial distress in the event of the loss of your life or limbs? If so, accidental death and dismemberment insurance "can be an affordable way to supplement your life insurance or medical coverage if you are seriously injured or die as a result of a covered accident," Friedlander says. Be aware that if you have a riskier job, you will likely pay higher premiums than those with lower-risk vocations. You may be wondering: Do I need both life insurance and AD&D coverage? Regardless of your risk status, Chavez says you should still have life insurance. "And if you fear that you will become disabled, you should probably purchase a separate disability insurance policy so that you can be sure to receive benefits if you are unable to work," recommends Chavez. "Consider AD&D insurance as a supplement to your life and disability insurance policies; it can play a crucial role, but it's wise to think of it as additional protection rather than relying solely on AD&D coverage." How can you get accidental death and dismemberment insurance?Many policyholders get their coverage at no cost from their employers. Find out if the company you work for provides a free or discounted AD&D policy as part of your employee benefits package. "However, if you are not covered by a company plan, you can shop for individual coverage via an insurance professional who can provide you with multiple quotes from private insurers," suggests Friedlander. Chavez advises searching for policies online and carefully comparing their features and costs. Count on performing necessary due diligence: Research the insurance company’s history and financial strength, read online reviews about the insurer and ask questions with an agent or customer service representative. "You can start the application process by requesting a quote for an AD&D insurance policy. Your application will be reviewed, and if you meet the requirements, your approval is guaranteed," she adds. Note that you'll need to purchase life insurance coverage at the same time if you want to buy accidental death and dismemberment coverage as a rider rather than a standalone policy. Frequently asked questionsIs accidental death and dismemberment insurance worth it?AD&D coverage is a no-brainer if it’s offered at no charge through your employer. But if you have to purchase coverage on your own, it pays to crunch the numbers and consider alternative forms of insurance. "The good news is that accidental death and dismemberment insurance rates can be much lower than your average life insurance rates. But if you are young and healthy, you may be able to get a comparably good rate for term life insurance," says Chavez. If you have a risky occupation or hobby or travel frequently, this coverage could be worth the cost. "For homebodies who are quite unlikely to die or get injured accidentally, it's probably not worth it," Martucci says. What's the difference between accidental death and dismemberment insurance and life insurance?AD&D insurance is not the same as term life or permanent life insurance. Life insurance policies typically cover the vast majority of deaths. Accidental death and dismemberment insurance is much narrower in scope: It only covers certain kinds of accidental death and certain injuries that result in the loss of use of your body parts, like eyes and limbs. Friedlander explains that "term life insurance is purchased for a defined period. If you die within that period, your family will receive the money from your life insurance policy. Accidental death and dismemberment coverage, by contrast, is usually supplemental to life insurance. It can be purchased as its own policy or as a rider to a life insurance policy." Is a heart attack considered an accidental death?Insurance carriers typically define a heart attack death as a type of natural death that doesn't qualify for AD&D benefits. "Accidental death and dismemberment policies generally don't cover cardiac arrest caused by trauma, surgical complications, drug overdoses, or other unnatural causes either," notes Martucci. What is supplemental AD&D insurance?Supplemental AD&D insurance is an optional level of group coverage that pays out clearly defined cash benefits if an accident results in death, blindness, or the loss of one or more limbs, according to Friedlander. He says not all employers offer this optional coverage for group plans, but you may be able to purchase AD&D coverage from a private insurance provider. What is voluntary life and AD&D insurance?Voluntary group AD&D insurance provides a simple means for employees to supplement their employer-provided group life insurance coverage and AD&D coverage with extra protection if they or a family member is dismembered or dies due to a covered accident. Not every employer offers this optional coverage for group plans, but you might be able to buy coverage from a private insurance provider. What is voluntary spouse AD&D insurance?Voluntary spouse AD&D coverage protects in case of accidental death or dismemberment involving your spouse and can help cover things like funeral costs and transitional services in the event a limb is lost, according to independent insurance broker Romo. Should I get accidental death and dismemberment insurance?Remember that AD&D insurance is usually a 100% company-paid perk. So there is no downside for employees already covered by this employer-offered group plan as part of a comprehensive benefits package. Gig workers and other individuals who don’t have this coverage need to assess their financial and family situation to determine if coverage is worth it. Insurance expert Romo says he would typically recommend AD&D insurance for someone unable to get traditional life insurance coverage due to underlying health conditions. Also, anyone who travels frequently would be a good candidate so that they are protected while away from home, he says. Do I need accidental death and dismemberment insurance?AD&D can help safeguard you and your loved ones from financial distress in the event of your death or a dismemberment. It can be an affordable means of supplementing your life insurance or medical coverage if you are severely injured or killed due to a covered accident. Due to the relatively low cost of accidental death and dismemberment insurance, it also can be wise to purchase this coverage if you are on a tighter budget and cannot afford life insurance. Having AD&D coverage in place provides a safety net and peace of mind that you and your beneficiaries will still have income if a covered accident occurs, says insurance agent Amber Benka. Is it worth it to get accidental death and dismemberment insurance?An AD&D policy may be a good idea, especially if you work in a high-risk job. People with riskier jobs pay higher premiums than people with low-risk employment. Supplemental AD&D coverage could be a wise investment regardless, but understand that AD&D doesn't cover you for any type of death or dismemberment.
Do you need AD&D insurance if you have life insurance?While you may not need AD&D insurance, AD&D serves to complement existing health and life insurance policies that may otherwise not provide coverage to events such as dismemberment, loss of vision, loss of hearing, or paralysis (depending on the policy).
How much is accidental death and dismemberment insurance?The cost of AD&D insurance
An AD&D policy usually costs $7 to $10 per month per $100,000 of coverage, but how much you actually pay for AD&D insurance depends on your age. The older you are, the higher your premiums — much like most other types of insurance.
Is accidental death and dismemberment insurance the same as life insurance?An accidental death and dismemberment insurance policy (AD&D) is not the same as a standard life insurance policy. Yes, it pays a death benefit, but as the name suggests, it only provides coverage in the event you die due to an accident.
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