Do I Need Both Life Insurance And Ad&D?
If you want coverage in case you’re accidentally seriously injured, it can make sense to get an Accidental Death and Dismemberment (AD&D) policy or rider in addition to your standard life insurance policy. However, AD&D insurance isn’t a substitute for standard life insurance, as it only applies to accidental circumstances, while standard life insurance has an all-cause death benefit.
What is AD&D Insurance?
AD&D insurance is a type of life insurance that pays out a benefit only when the insured is in a covered accident that causes death or specific serious injuries such as the loss of a limb, paralysis, or blindness. AD&D coverage can be purchased as a standalone policy, or it can be added to a standard life policy as a rider.
What Does AD&D Cover?
The accidents and injuries your AD&D coverage can pay out for will be specified in the policy. Depending on your policy, accidental dismemberment might include not only the loss of a limb but also serious accidental trauma that prevents you from working. Accidents covered by AD&D insurance may include:
| Accidents Covered |
|---|
| Car accidents |
| Falls |
| Electrocution |
| Fire |
| Drowning |
AD&D vs. ADB Life Insurance
Both AD&D and Accidental Death and Dismemberment (ADB) life insurance policies only pay out in the case of accidents. The main difference is that an ADB policy may only pay out for a fatal accident, while AD&D policies can also pay out for accidental dismemberment and certain accidental injuries.
Should You Get AD&D Insurance?
If you already have life insurance and you’re concerned about covering the costs of a serious accidental injury, it can make sense to supplement your life insurance with an AD&D standalone policy or rider. However, if you don’t qualify for standard life insurance, AD&D coverage may still be better than no coverage. An AD&D policy may be easier to qualify for because it doesn’t require a medical exam, and you can generally get an AD&D policy faster than a standard life policy.
If you’re considering an AD&D or ADB policy, speak with a licensed life insurance representative to determine the best coverage options for your needs and budget.
