What Is The Difference Between Term Life And Accidental Death Insurance?

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.

Term life insurance pays out for far more causes of death than AD&D insurance, and it may not cost significantly more. Therefore, if you’re concerned about accidents, adding an AD&D rider onto a standard life insurance policy can make more sense than purchasing a standalone AD&D policy.

What is Accidental Death & Dismemberment (AD&D) Insurance?

Accidental death and dismemberment (AD&D) insurance is a category of life insurance that only pays out a benefit 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 is Accidental Death Benefit (ADB) Insurance?

An accidental death benefit (ADB) is a type of life insurance policy that pays out only if the policyholder dies in a covered accident. It does not provide coverage for non-fatal injuries or death from natural causes.

What is the Difference Between AD&D and ADB Insurance?

AD&D Insurance ADB Insurance
Covers accidental death and dismemberment Covers accidental death only
Covers certain accidental injuries Does not cover non-fatal injuries
Can be purchased as a standalone policy or rider Can be purchased as a standalone policy or rider

Both AD&D and 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.

When to Choose AD&D Insurance?

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.

AD&D insurance is usually more affordable than standard life insurance rates. However, keep in mind that if you’re in a particularly high-risk job such as firefighting, law enforcement, or the military, you may not be able to qualify for AD&D coverage.

When to Choose ADB Insurance?

An ADB policy may make sense if you’re concerned about covering the costs associated with a fatal accident, and you don’t want to pay the higher premiums of a standard life insurance policy.

Combining AD&D and ADB Insurance

Depending on the insurer, you may be able to combine accidental death and dismemberment coverage with life insurance as a rider on your life policy. Alternatively, you can get AD&D insurance as a standalone policy to serve as a supplement to your existing life insurance.

If you don’t already have life insurance or AD&D insurance and you want extra coverage for accidents, consider getting a standard life insurance policy with an AD&D life insurance rider. The AD&D rider increases your life insurance death benefit if you pass away from a covered accident, and it pays out a certain amount if you experience a qualifying accidental injury.

Compare rates and coverage options to determine what’s best for you.

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