Accidental Death and Dismemberment Life Insurance l Life Insurance Quote Online l Best Life Insurance Companies List 2016
Accidental Death and Dismemberment Life Insurance:- (AD&D) is offered through a policy that pays additional benefits in case of a nonwork-related accident. In the event of accidental death, this insurance will pay a little more in addition to the coverage that is already held. AD&D does not cover Death due to natural causes such as from cancer, heart disease, and suicide.
Accidental death and dismemberment insurance usually pay when the policy holder suffers from the loss of limbs, fingers, sight, or permanent paralysis. However, the point to be noted here is that here are certain exceptions to it. Accidents caused because of undertaking dangerous sports such as racing, mountaineering, and paragliding is not covered. Other exceptions include war and terrorism.
How many Type of Accidental Death and Dismemberment Insurance ?
There are four types of Accidental death and dismemberment insurance offered in the United States. These include Group Life Supplement, Voluntary, Travel Accident, and Coverage for Dependents. The amount that is paid out and the types of injuries differ according to the insurer and the package offered, and these are explicitly mentioned in the insurance policy.
In group life supplement the AD&D Benefit is a part of the insurance coverage and the amount that is to be paid out is the same as that of group life benefit. Involuntary policies, the AD&D benefit is given to the members of the group as a separate benefit that is a payroll deduction. In Travel Accident Policies Scheme (business related) the premiums are paid entirely by the employer and provide additional coverage to workers. Some insurance policies may also offer cover for dependents.
Cheapest AD&D Life Insurance Scheme List.
These policies can also be provided in the form of riders and can also carry a double indemnity clause. This term just means that the beneficiaries would get a double reimbursement in case of the policy holder’s death due to an accident. This just means that if you have opted for the rider and the double indemnity clause in a policy worth $100,000, then your dependents would get $200,000 in case you are killed in an accident.
These systems usually work on a one member basis which means that if you lose one limb, then only half benefit is paid. However, Accidental death and dismemberment insurance policies are very limited in nature and should be purchased as a rider and not as a stand-alone system. Moreover, the death of the person should be the direct result of an accident for the system to be effective.
The need for such systems ultimately depends on your financial condition and if you have any dependents. These policies are very low-priced since only approximately 5% of deaths in the United States are due to accidents. The premium for such policies can be as little as $60 per month. It is advisable to choose a rider of AD&D instead of Purchasing Accidental Death and Dismemberment Insurance Policy