Term Life Insurance with Accidental Death Benefit
Accidental death and dismemberment (AD&D) insurance is usually added as a rider to a life insurance policy.
AD&D insurance pays benefits in the case of a person’s accidental death or dismemberment, which is the loss—or loss of use—of body parts or functions.
AD&D insurance usually comes with significant coverage limitations, so always read the fine print.
AD&D does not pay if the insured died due to natural causes, such as cancer or heart disease.
Known as double indemnity, AD&D may pay a benefit equal to or a multiple of (usually 2x) the regular insurance’s face amount.