What is accidental death and dismemberment insurance (ADandD)?

Accidental death and dismemberment insurance, commonly referred to as AD&D, specifically provides coverage in the event of an accidental death or certain severe injuries, known as dismemberments. This insurance pays out a benefit to the insured's beneficiaries if the insured dies as a result of an accident. Additionally, if the insured sustains specific injuries, such as the loss of limbs, eyesight, or other functions, the policy pays a predetermined amount based on the loss.

This is distinct from medical expense coverage, which would typically encompass a broader range of health-related costs, and is not limited to any special groups, such as individuals with disabilities. The scope of AD&D coverage is also not restricted to work-related incidents; it applies to any accident that leads to the defined outcomes covered in the policy. Thus, the reference to benefits for accidental death or specific injuries accurately captures the essence of what AD&D insurance entails.