- To obtain AD&D insurance, you must pay a monthly premium to the insurance issuer. The amount of your premium is determined by the amount of lump sum coverage you choose to take out on your accidental death and dismemberment policy. You can choose from different coverage amounts, depending on your financial situation and family's needs. You can buy individual or family death and dismemberment insurance policies. Policy benefits usually range from $10,000 to $250,000 or more. A basic plan was priced around $60 annually as of 2008, according to Insurance.com.
- If you die in an accident, your accidental death and dismemberment policy pays out a lump sum to your beneficiary. In the event you lose an appendage, like an arm or lose your eyesight, your AD&D insurance policy will pay out a predetermined percentage of your policy, such as 25 to 50 percent of the lump sum amount of total coverage. AD&D policies may also pay out in the event you become paraplegic or quadriplegic as a result of an accident, according to Insure.com.
- AD&D insurance policies contain accident exclusions that can render coverage useless. Examples of payout exclusions include suicide, pre-existing physical or mental conditions, car accidents caused while the insured party is intoxicated and any accidents sustained while the insured party is under the influence of illegal drugs, according to Insure.com. Certain policies may not cover injuries sustained while the insured party engages in active combat or military service.
- AD&D insurance policies may offer extra services in addition to cash benefits. Additional services can include offering counseling for your spouse, limited child care allowances or home alteration as a result of paralysis. Accidental death and dismemberment policies may not pay the full amount of coverage if the insured party engages in reckless behavior, such as not wearing a seat belt while driving.
The Facts
Function
Exclusions
Considerations
SHARE
