Accidental Death And Dismemberment Insurance - AD&D

Filed Under » , , , , ,
Dictionary Says

Definition of 'Accidental Death And Dismemberment Insurance - AD&D'

A rider attached to a life or health insurance policy. AD&D covers death by accidental means (rather than natural causes) and dismemberment, which includes loss of the use of certain body parts (including limbs or eyesight.) 

These riders are usually written in such a way that the insurer must pay double the amount payable otherwise, or a specific amount of continous income payments, and are sometimes called double indemnity riders. AD&D insurance is often offered by employers as an extra option on group health plans.

Investopedia Says

Investopedia explains 'Accidental Death And Dismemberment Insurance - AD&D'

It is important to carefully check the terms of AD&D policies. For example, if you are injured in an accident that later turns out to be fatal, the death must occur within a certain amount of time. To qualify for 100% of the dismemberment insurance, the injury may have to involve the loss of two limbs or both eyes. 

There is a schedule that lays out what percentage of the total will be paid for so-called partial dismemberment, such as the loss of one limb or the sight in one eye. Overall, AD&D is a limited policy that will be useful to a small percentage of people, so be sure to read the fine print in advance so that you understand exactly what is covered, and under what time frames.

Articles Of Interest

  1.

    Fighting The High Costs Of Healthcare

    If your employer is cutting medical benefits, a health savings account may be right for you.

  2. Life Insurance: Putting A Price On Peace Of Mind

    Would your death leave loved ones financially stranded? Find out how to ease your mind and keep them protected.

  3. Let Life Insurance Riders Drive Your Coverage

    Find out how these additional benefits can help you customize your policy.

  4. Critical Illness Insurance: Get Paid If You Get Sick

    This coverage will allow you to focus your attention on getting well, rather than getting by.

  5. 5 Things You Should Know About The New Health Insurance Marketplace

    Here are five things you should know about the new Health Insurance Marketplace (AKA Health Insurance Exchange), which launches on October 1.

  6. Get An Academic Finance Career

    Working nine months a year and earning a six-digit salary might seem like the high life, but these jobs are not easy to come by.

  7. Financial Designations That Employers Require

    We break down the designations that are important to have if you want to work in the financial sector.

  8. Retirement: The One Thing Couples Shouldn't Do Together

    Staggering retirement can have both financial and emotional benefits for married couples.

  9. Top 5 Budgeting Questions Answered

    You don't need a degree to understand your money, begin saving and pay down debt.

  10. Investing In Medical Equipment Companies

    Learn the basics about medical equipment companies and how investing in them can benefit growth and value investors alike.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  2. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  3. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  4. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  5. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...

  6. Bailment

    The contractual transfer of possession of assets or property for a specific objective.
Trading Center