What’s the difference between AD&D and life insurance?
An accidental death and dismemberment policy, or AD&D, is a type of insurance coverage that pays benefits for accidental death and specific injuries.
This type of coverage can be beneficial in many circumstances to protect families.
However, even though this type of coverage can be advantageous in many scenarios, it is important to remember that AD&D insurance is not the same as life insurance.
AD&D versus Life Insurance
Some of the most important differences between AD&D and life insurance include:
- Coverage of death – Although both policies can provide death benefits, AD&D does not cover all types of death. In general, AD&D will only cover deaths that have been ruled accidental.
Life insurance, on the other hand, will cover deaths due to accidents, illness, old age, drug overdose and drunk driving.
- Coverage of injuries – AD&D insurance covers specific types of serious injuries, including loss of limb, loss of eyesight and paralysis. Life insurance, on the other hand, does not cover injuries.
If you die in an accident and you carry both AD&D coverage and life insurance, your designated beneficiary will receive a payout from both policies.
Purchasing AD&D Coverage
It is possible to buy AD&D coverage on its own. However, in most cases, AD&D coverage will be sold as a rider on a standard life insurance policy. Because AD&D coverage does not replace life insurance, most buyers should consider purchasing both types of policies.
To learn more about purchasing AD&D coverage, contact an insurance provider or speak with your local credit union.