What is Accidental Death and Dismemberment Insurance?

Answer:

Accidental death and dismemberment insurance is basically life insurance with a very narrow focus when it comes to providing death benefit. A policy of this type usually will only pay a face amount if death occurs within 90 days of an accident of some type. It will not provide coverage for death resulting from a disease, illness or other decline in health due to non-accidental causes.

Accidental death coverage is cheap due its narrow focus.

Also—since this type of coverage doesn’t require a medical exam—it can be a good alternative for those who have a fear of needles and would rather have some life insurance coverage rather than none. It could also be the only alternative for someone too young to qualify for Guaranteed Issue Life Insurance and too sick to qualify for something more traditional like term or permanent life insurance.

The “dismemberment” part of the coverage provides a lump sum payment if you suffer a severed limb, lose an eye, become a paraplegic or suffer a range of other horrifying results from an accident. For instance… your policy may specify that if your leg is amputated… you’ll be paid $1,500 one time.


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