Life insurance and accidental death insurance are two different types of coverage, although they may have some similarities. Accidental death and dismemberment (AD&D) insurance is a type of life insurance that covers specific types of accidents that result in death or serious injuries such as the loss of a limb, paralysis, or blindness. AD&D coverage is available as a standalone policy or as a rider to an existing life policy. On the other hand, life insurance covers death from any cause, including accidents and natural causes.
What’s the Difference Between AD&D and Life Insurance?
The main difference between AD&D and life insurance is that AD&D only pays out if the insured dies or suffers a serious injury due to a covered accident, while life insurance pays out for death from any cause. However, some life insurance policies may offer an AD&D rider that provides additional benefits in case of accidental death or injury.
To help better understand the differences between AD&D and life insurance, here is a table that shows the key distinctions:
|Accidental Death and Dismemberment (AD&D)||Life Insurance|
|Coverage||Accidental death, dismemberment, and certain injuries||Death from any cause|
|Benefit||Lump-sum payment to the beneficiary||Lump-sum payment to the beneficiary|
|Cost||Less expensive than life insurance||More expensive than AD&D insurance|
|Availability||Available as a standalone policy or as a rider to a life policy||Available as a standalone policy or as a rider to an AD&D policy|
|Coverage Limitations||Covers only specific accidents and injuries||Covers death from any cause|
Who Should Get AD&D Insurance?
AD&D insurance may be a good option for individuals who are at a higher risk of accidental death or serious injury due to their profession or lifestyle. However, it’s important to note that AD&D insurance may not cover all types of accidents or injuries, and it may not be available to everyone. For those who are concerned about accidental death or injury, adding an AD&D rider to a life insurance policy can provide additional protection.
- Investopedia. Life Insurance Vs. Ad&D Insurance
- Insuranceopedia. Ad&D Insurance Vs Life Insurance Policies - Protective Life
- Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited. Life Insurance Vs. Ad&D Insurance
- policybachat. Life Insurance Vs. Ad&D Insurance
- The Economic Times. Why Is Ad&D Not Considered Life Insurance?