What Does Accidental Death And Dismemberment Insurance Cover?
last updated on December 2, 2020Accidental death and dismemberment (AD&D) insurance only covers specific circumstances – namely death or permanent disability due to a qualifying accident.
Do I need accidental death and dismemberment insurance?
It’s certainly easy to purchase:
- No medical exam
- Guaranteed approval (almost always)
While no one necessarily needs AD&D, it might be the right thing to purchase it.
Every year, 214,000 people die from injuries and violence in the United States.
– Centers for Disease Control and Prevention
Think of this as your go-to AD&D guide.
Here, you will find a comprehensive summary of what accidental death and dismemberment coverage is, what it covers and what it doesn’t, the best companies to look at, and – importantly – quotes.
Table Of Contents
Overview
AD&D is technically NOT life insurance. It’s a form of casualty insurance that will pay under specific conditions.
There are two parts to an accidental death and dismemberment policy:
1. Accidental
An insurance policy that pays a benefit to the beneficiary in the event of death occurring as a result of a qualifying accident.
2. Dismemberment
If a qualifying injury occurs (such as a loss of limb), the individual receives a benefit.
Where You Can Buy
AD&D insurance is available from three primary sources:
- Standalone policy (what this article covers)
- Rider to a life insurance policy
- Group policy – often through your employer
Key Points
Not to be confused with traditional no medical exam coverage, like term life insurance or whole life insurance, AD&D ONLY pays for a qualifying accidental death or injury.
Often, we recommend applicants consider AD&D as a standalone policy if they do not qualify for traditional coverage and are too young for guaranteed issue life insurance (younger than 40 years old).
Important – if you qualify for traditional life insurance, you may want to consider adding an AD&D rider onto your policy.
Keep in mind – it’s easy to buy accidental death and dismemberment coverage:
- No medical exam
- No health questions (almost always)
- Guaranteed approval (almost always)
- Simple, quick application
- Available for purchase online or over the phone
What Accidental Death And Dismemberment Covers
Accidents happen. And, recent statistics from the Centers for Disease Control and Prevention demonstrate that, unfortunately, they are on the rise.
In the first half of life, more Americans die from violence and injuries — such as motor vehicle crashes, falls, or homicides — than from any other cause, including cancer, HIV, or the flu.
– Centers for Disease Control and Prevention
However, not all accidents are covered by an AD&D policy. You will want to understand the fine print of a policy before submitting your application.
Accidental Death
An AD&D policy typically covers the following accidents:
Should death occur as a result of any of the following, your AD&D policy will typically pay a benefit to your beneficiary:
- Fall
- Choking
- Drowning
- Fire
- Motor vehicle accident
- Commercial flight crash
- Falling object
- Accidental poisoning
- Firearm accident
- Heavy machinery accident
Keep in mind, specific AD&D policies differ.
Dismemberment (Injury)
Additionally, AD&D usually covers the following dismemberments and/or injuries:
The insurance carrier will ask for physician documentation pertaining to the dismemberment or injury.
You (not your beneficiary) will typically receive payment for the following types of injuries:
- Loss of hand
- Loss of foot
- Loss of hearing
- Loss of sight
- Loss of speech
Keep in mind – Dismemberment coverage is different than disability income insurance. It will not replace your income.
Accidental Death And Dismemberment Payout
The extent of your injury (or dismemberment) determines the amount of benefit you receive.
As an example, your carrier may pay specific percentages for specific circumstances:
Sample AD&D Benefits
| Injury | Paid Benefit Percent |
|---|---|
| Loss of hand/foot | 50% |
| Loss of both hands/feet | 100% |
| Loss of thumb/index finger | 25% |
| Loss of sight in one eye | 50% |
| Loss of sight in both eyes | 100% |
| Loss of hearing in both ears | 100% |
| Quadriplegia | 100% |
| Paraplegia | 50% |
| 3rd degree burn - 75%+ body | 100% |
Important – Not all policies cover dismemberment. Some only cover accidental death – referred to as ADB. Be sure to confirm the type of policy you are purchasing.
What Accidental Death And Dismemberment Does NOT Cover
There are exclusions to an AD&D policy.
While each carrier varies slightly, think of the following as circumstances or events that are not usually covered.
- Illness
- Non-commercial aviation
- War
- Suicide
- Natural causes
- Felonious activity
- Non-prescribed drugs
- Alcohol
- Injury of an athlete at a professional sporting event
It is possible to collaborate with an independent agent to customize a policy to fit your specific needs.
Let’s say, for example, you are a professional athlete or a private pilot. AD&D policies tailored to your needs are available.
Accidental Death And Dismemberment Insurance Companies
We recommend evaluating the following four companies.
Important – be sure to confirm if the carrier includes dismemberment in their coverage (and whether that’s important to you).
1. Mutual Of Omaha
Product name: Mutual of Omaha Guaranteed ADvantage Accidental Death Insurance
It is affordable coverage, with an easy application process.
Mutual of Omaha, Accidental Death Insurance
Product At A Glance
- Face amounts from $50,000 to $500,000
- Issue ages: 18 – 70
- Option to include “family coverage”
- Insured’s spouse has death benefit of 100%
- Insured’s children have death benefit of 20%
- Work and non-work related fatalities are covered
- Return of Premium (ROP) rider is available for ages 10 – 50 (not available in AR, CT, GA, NY, PA or VA)
- If death occurs as a fare-paying passenger (e.g. airplane), death benefit doubles
- If death occurs as a pedestrian or in an automobile, death benefit pays an additional 25%
- Policy is guaranteed renewable up to age 80
- Guaranteed issue
Financial rating – A+ (AM Best)
2. Gerber
Product name: Gerber Accident Protection
It’s a smart option for helping to protect you and your family financially in the event of an accidental dismembering injury or fatality.
– Gerber, Accident Protection
Product At A Glance
- Face amounts from $50,000 to $250,000
- Issue ages: 18 – 69 (19 – 69 in CO and FL)
- Option to include spouse and child (state exclusions apply)
- Benefit only payable by qualifying accidental death
- No riders available
- Policy is renewable up to age 80 (no expiry in CO, FL or MA)
- Includes dismemberment coverage
- Guaranteed issue
Financial rating – A+ (AM Best)
3. Assurity
Product name: Acci-Flex Accidental Death Insurance
No one wants to think that an accident could happen, but if it does, Acci-Flex can help.
– Assurity, Acci-Flex
Product At A Glance
- Face amounts from $50,000 to $350,000
- Issue ages: 18 – 60
- Accidental Disability Income rider is available
- Monthly income if you suffer total disability from qualifying accident
- Up to 60% of gross monthly income (not to exceed $1,800/mo)
- Policy is renewable up to age 75
- No medical exam
- One health question
Financial rating – A- (AM Best)
4. Fidelity Life
Product name: Accidental Death Benefit
In the event of your accidental death, your family and loved ones may need substantial financial support quickly.
– Fidelity Life, Accidental Death Benefit
Product At A Glance
- Face amounts from $100,000 – $150,000
- Issue ages: 20 – 59
- Included with the policy:
- Auto safety and travel accident benefits
- Optional add-on features:
- Return of premium rider
- Inflation rider
- Family accidental death benefit
- Spouse double tragedy
- Family auto safety
- College fund benefit
- No medical exam
- Guaranteed issue application process
Financial rating – A- (AM Best)
Important – Be sure to confirm that a traditional no physical life insurance policy doesn’t make more sense for your needs.
Accidental Death And Dismemberment Quotes
Let’s take a look at some sample rates for an AD&D policy.
It’s important to note that the quotes are merely examples. Your individual rate will vary and is dependent on the company you apply with.
Accidental Death and Dismemberment Quotes Male
| $50,000 | $100,000 | $250,000 | $500,000 | |
|---|---|---|---|---|
| 20 Year Old | $5.22 | $10.45 | $25.52 | $63.44 |
| 25 Year Old | $5.22 | $10.45 | $25.52 | $63.44 |
| 30 Year Old | $5.22 | $10.91 | $21.34 | $63.44 |
| 35 Year Old | $5.22 | $10.91 | $21.34 | $63.44 |
| 40 Year Old | $5.22 | $10.21 | $19.58 | $63.44 |
| 45 Year Old | $5.22 | $10.21 | $19.58 | $63.44 |
| 50 Year Old | $5.22 | $10.45 | $22.22 | $63.44 |
| 55 Year Old | $5.22 | $10.45 | $22.22 | $67.81 |
| 60 Year Old | $5.22 | $11.26 | $22.22 | $67.81 |
| 65 Year Old | $5.22 | $22.05 | $48.56 | $92.75 |
| 70 Year Old | $13.21 | $22.05 | $48.56 | $92.75 |
Accidental Death and Dismemberment Quotes Female
| $50,000 | $100,000 | $250,000 | $500,000 | |
|---|---|---|---|---|
| 20 Year Old | $5.22 | $7.83 | $13.64 | $35.88 |
| 25 Year Old | $5.22 | $7.83 | $13.64 | $35.88 |
| 30 Year Old | $5.22 | $7.83 | $13.64 | $35.88 |
| 35 Year Old | $5.22 | $7.83 | $13.64 | $35.88 |
| 40 Year Old | $5.22 | $8.10 | $14.30 | $35.88 |
| 45 Year Old | $5.22 | $8.10 | $14.30 | $35.88 |
| 50 Year Old | $5.22 | $9.15 | $16.94 | $35.88 |
| 55 Year Old | $5.22 | $9.15 | $16.94 | $43.31 |
| 60 Year Old | $5.22 | $9.15 | $16.94 | $43.31 |
| 65 Year Old | $5.22 | $16.98 | $35.88 | $67.38 |
| 70 Year Old | $10.68 | $16.98 | $35.88 | $67.38 |
As you can see, AD&D insurance coverage is affordable. You will just need to keep in mind that it’s not nearly as comprehensive as life insurance.
How To Buy
The most important first step to take in order to secure an accidental death and dismemberment policy is to work with an independent agent.
Why? You will want access to multiple carriers.
No two AD&D companies are the same and it’s best to evaluate the top-rated carriers to find the best policy to fit your needs.
To get started, simply fill out our free instant quote.
