Accidental Death And Dismemberment Insurance

The number of people who die in accidents or suffer disabilities due to an accident is higher than any other cause. Persons younger than 25 years old are found to be involved in at least 25% of fatal traffic accidents in the United States, as indicated by the Census Bureau. This is only an American statistic and that age group suffers at least 400,000 deaths globally per the World Health Organization. Other types of accidents occur that don't result in death but do leave people disabled with lives forever changed.

When talking about insurance, most people automatically think of car insurance. That is an important coverage for protecting your vehicle if an accident should occur, but other types of insurance can have a significantly higher impact on your family should the unfortunate occur.

Accidental Death and Dismemberment insurance, also known as AD&D, is a critical insurance plan that covers several situations. Many individuals may actually already have this type of insurance as a rider to their life insurance but haven't taken the time to understand all the benefits. If you don't have AD&D you should consider it especially if you have family members dependent on you and your wages. If you are killed in an accident, rather than from a life-threatening disease such as cancer or a heart attack, AD&D makes a benefit payment to your survivors. This payment is in addition to the payment by your existing Life Insurance plan if it is a rider to that plan. You can find details on the payment and possible exceptions by reviewing the Certificate of Insurance or Certificate Booklet that you should have received with your policy.

Many people think that life insurance and AD&D are the same thing, but they're very different. Life insurance is very specific, only paying a benefit in the case of your death. AD&D handles those situations where you may be involved in an accident that causes loss of a critical body part or sense such as eyesight. These types of accidents would likely have change your life significantly, leaving you without the means to support yourself in the manner you're used to. You would receive a payout in the form of a lump sum, depending on the type of loss you experienced. Never wait until after an accident to know the limits of your policy. Everything is spelled out in the Certificate of Insurance so read it carefully when buying an AD&D policy.

An important note applies to anyone who travels outside the United States to a country which has Travel Warning posted against it by the State Department. Some insurance companies specifically exclude accidents encountered in such risky destinations, regardless of an accident that is not incurred due to a war.

Find good references to a reputable broker to help you pick an Accidental Death and Dismemberment Insurance plan that's right for you. Asking friends who have such plans how they like their insurance broker is a good way to locate the plan that meets your specific situation and needs.