When a loved one is hurt or killed in an accident, the event is traumatic and puts a lot of strain on a family. Much of the time, families aren’t prepared to deal with the financial repercussions of losing a loved one. Accidental death and dismemberment insurance (AD&D) can be very valuable in such instances and will bring peace of mind to you and your family.
An AD&D insurance policy is often a supplement to other life insurance policies and will pay a fixed amount if you die in an accident. In addition, an AD&D policy will pay a specified amount if you lose a limb or experience other severe injuries. Coverage will vary and it’s important to understand what AD&D policies cover and what they do not.
Most policies will pay in the event you lose your sight, speech, or hearing as a result of an accident, and many will even include a percentage of payment for partial or complete paralysis. An AD&D policy is sometimes sold as a life insurance rider but may also be purchased separately.
Term life insurance provides coverage for a set period of time and only pays out if you die within that covered period. Whole life insurance is not restrained by a set time period. AD&D policies, whether purchased alone or as a rider, is usually much more affordable than term or whole insurance.
Speaking with an insurance agent who sells AD&D insurance is an excellent way to have your unique needs assessed. This will allow for a policy to be created that provides the exact type of coverage your family will need if you were to pass away or experience a traumatic event.