Voluntary Accidental Death And Dismemberment Insurance - VAD&D

AAA

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.

INVESTOPEDIA EXPLAINS '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. No results found.
Related Articles
  1. No results found.
comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center