Accidental Death and Dismemberment Insurance

There are many kinds of insurance on the market, but for workers and others accidental death and dismemberment insurance can be one of the most important. This type of insurance coverage is often misunderstood, and it is important for those in search of coverage to shop around carefully for the best price and the highest benefits.

As the name implies, accidental death and dismemberment insurance, known in the trade as AD&D, provides an element of life insurance coverage. The policy will designate a special death benefit to be paid to the designated beneficiary or beneficiaries in the event of the insured’s death. This type of coverage goes further than traditional life insurance, however, providing an additional schedule of payments that are to be made under very specific circumstances.

These specific circumstances include accidents, workplace injuries and other events that result in the loss of a specific limb or in the loss of a specific physical function. The specifics included in these accidental death and dismemberment insurance policies can be quite complex, and it always pays to read the fine print carefully. When buying such a policy on your own it is absolutely essential to determine exactly what is – and what is not – covered under the terms of the policy. If there is anything you don’t understand – or anything that seems unclear – it is important to request clarification before signing any paperwork or paying any policy premiums.

It is also important to keep in mind that you may already have some accidental death and dismemberment insurance coverage in place. Many employers take out this type of coverage on their workers as a standard employee benefit, and many firms also make additional AD&D coverage available to their workers at group rates. Those who have this type of coverage available at work may want to check the prices of the coverage – and the coverage limitations – before shopping for their own coverage.

That does not mean that the employer always offers the best deal on this specialized insurance product. It simply means that there will be one more policy to compare. It is still important to compare policies carefully, and to choose highly rated companies when shopping for an accidental death and dismemberment policy. The prices of this coverage can vary quite widely, as can the schedule of benefits. It is important to carefully compare the levels of coverage and the premium prices before making a final decision.

No one likes to think about accidents, just as no one likes to think about their own mortality. Even so, it is important for every worker to consider the need for AD&D insurance coverage. Accidents can and do happen, and they can strike at any time, on the job or off. While life insurance provides an important benefit for workers who are killed or die prematurely, many families are woefully unprepared for accidents that leave the family breadwinner disabled and unable to work. Accidental death and dismemberment coverage is designed to fill that gap and provide the peace of mind that comes with knowing that the family is well protected.