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What is accidental death and dismemberment insurance?

Most people know at least a little bit about what life insurance is, but what’s the big deal about accidental death and dismemberment insurance? What is it? Why is its name so long? Does anybody even have it?

If you’re here to learn more about accidental death and dismemberment insurance, we’ve got you covered.

What is accidental death & dismemberment insurance?

Accidental death and dismemberment (or, AD&D) insurance is a type of insurance that pays out when you either die or are injured (in the form of dismemberment—losing limbs or fingers) in an accident of some kind. It’s not life insurance, since it doesn’t cover you for anything natural, only accidents, and it also covers injuries, not just death.

For example: if you're driving down the highway and unintentionally veer in front of an oil truck, your beneficiary will receive compensation for your accidental death. But if it's determined you had a heart attack while you were driving and that's what caused you to veer in front of the truck, your beneficiary won't receive a check.

Why do I need it?

If you already have life and health insurance, you’re probably wondering why you’d need something like AD&D. Sure, if you have to go to the hospital for an injury, your health insurance will likely pay for that, but what about all the time spent in recovery? AD&D gives you funds you can use for any reason, including things like groceries or gas money while you’re not making a paycheck. It’s a nice thing to have when your regular income isn’t available.

In the case of death, your loved ones can use that money to make up any loss of income.

How do I get it?

Some insurance companies offer it as a rider, or add-on, to your life insurance policy. You might also find AD&D insurance in your employee benefits package at your job. Other companies might offer it as its own policy, separate from life insurance.

If you decide to shop around for AD&D insurance, be sure to weigh the benefits of each product. Some policies might cover only specific kinds of dismemberment. Some might have very specific limitations on what an “accident” is. Make sure you know what kind of coverage you and your loved ones need before committing to a policy.

How to learn more about life insurance

Life insurance may seem complicated, but it’s not that hard once you know the basics. Of course, we are happy to help. You can also use the TruStage Life Insurance Calculator to compare different types of insurance and learn more about your options.

Keep reading:

What are the different types of life insurance?
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What should I look for in a reputable insurance company?
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How much life insurance do you need?
This article walks you through several popular methods for estimating how much life insurance you need to ensure your family’s future.

Life insurance when you're young
It’s tempting to put off buying life insurance when you’re young, especially if you’re just starting out and money is tight. But there are two good reasons to buy life insurance now instead of waiting.