What is covered by AD&D insurance?
Accidental death and dismemberment (AD&D) insurance pays out if you die due to an accident (like a car crash) or if you become paralyzed or lose a limb, hearing, sight or speech.
AD&D does not pay out if you die due to illness, disease or old age.
And AD&D policy will spell out what it will pay in a variety of circumstances. For example, a policy might:
- Pay the full amount if you die accidentally.
- Pay the full amount if you lose speech and hearing in both ears.
- Pay out partial amounts (such as 25% or 50%) if you lose eyesight, a finger, thumb or a limb, or are
- permanently paralyzed. The policy will specify how much is paid for each cause.
