DEFINITION of 'Voluntary Accidental Death And Dismemberment Insurance - VAD&D'

A financial protection plan that provides a beneficiary with cash in the event that the policyholder is accidentally killed or loses a certain body part. Voluntary accidental death and dismemberment insurance is an optional benefit offered by some employers. Premiums are based on the amount of insurance purchased, and this type of insurance can make sense for workers in occupations that place them at high risk of physical injury.

BREAKING DOWN 'Voluntary Accidental Death And Dismemberment Insurance - VAD&D'

How much the policy will pay in the event of a claim depends not only on the amount of coverage purchased, but on the type of claim filed. For example, the policy might pay 100% if the policyholder is killed or becomes quadriplegic, but it might only pay 50% for the loss of a hand or the permanent loss of sight in one eye.

RELATED TERMS
  1. Accidental Death And Dismemberment ...

    A rider attached to a life or health insurance policy. AD&D covers ...
  2. Accidental Death Benefit

    The payment due to the beneficiary of an accidental death insurance ...
  3. Accidental Means

    A condition for losses covered under an insurance policy that ...
  4. Voluntary Life Insurance

    A financial protection plan that provides a beneficiary with ...
  5. Accident And Health Benefits

    Fringe benefits provided to employees for sickness, accidental ...
  6. Experience Rating Insurance

    The amount of loss that an insured party experiences compared ...
Related Articles
  1. Insurance

    Accidental Death And Dismemberment Insurance

    Accidental death and dismemberment insurance provides coverage if the policyholder dies by accidental means, or loses use of limbs or eyes.
  2. Insurance

    How Life Insurance Payouts Work

    Life insurance provides peace of mind to policyholders and their loved ones.
  3. Managing Wealth

    Life Insurance With an Increasing Death Benefit

    Why buy a life insurance policy with an increasing rather than level death benefit
  4. Retirement

    Understanding Different Types of Life Insurance

    Understand the various types of life insurance, how each can be used in personal or business financial planning, and for whom they are best-suited.
  5. Insurance

    Understanding Taxes on Life Insurance Premiums

    Learn about the tax implications of life insurance premiums, including when they might be taxable and whether they are tax deductible.
  6. Insurance

    Getting Your (Insurance) House in Order

    From starting a family to retirement, insurance can play a role in taking care of financial needs. This piece looks at some of the choices you can make.
  7. Insurance

    Dividend-Paying Whole Life Insurance: What to Know

    Many whole life insurance policies pay dividends. Here are what policyholders need to consider.
  8. Financial Advisor

    Advising FAs: Explaining Life Insurance to a Client

    Life insurance was initially designed to protect the income of families, particularly young families in the wealth accumulation phase, in the event of the head of household's death.
  9. Insurance

    Understanding Insurance Claims

    An insurance claim is a formal request made to an insurance company that asks for a payment based on the terms of the policy.
  10. Insurance

    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.
RELATED FAQS
  1. Why is accidental life insurance so inexpensive?

    Accidental life insurance is an inexpensive way of obtaining life insurance coverage for yourself or someone else in your ... Read Answer >>
  2. Why would you want a monthly benefit versus a daily benefit?

    An insurance benefit is the amount of money paid to or on behalf of the policyholder. Depending on what kind of insurance ... Read Answer >>
  3. Can my insurance company refuse me coverage?

    Insurance isn't always as straightforward as other products. Insurers can deny coverage in many different instances:Non-Renewal ... Read Answer >>
Hot Definitions
  1. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  2. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  3. Down Round

    A round of financing where investors purchase stock from a company at a lower valuation than the valuation placed upon the ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  6. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
Trading Center