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Accidental Death And Dismemberment

Accidental Death and Dismemberment (AD&D)

Definition

Accidental Death and Dismemberment (AD&D) — a type of coverage often written in conjunction with group life insurance plans. It essentially provides for (1) "double indemnity" when death is caused by an accident and (2) defined dismemberment benefits. It will generally pay the full principal sum when death occurs or more than one member (e.g., hand, eye, or foot) is lost in an accident. One-half of the principal sum is generally paid when one member is lost.

Related Terms

Dismemberment

In accident and health insurance policies, the definition encompasses loss of limbs or sight. A fixed benefit is paid to insureds who suffer certain types of dismemberment under these policies. The policy will typically pay the principal sum for loss of both hands, both feet, the sight of both eyes, one hand and one foot, or the sight of one eye and one hand or foot. For loss of any one, it will usually pay a percentage (e.g., 50 percent) of the principal sum.

Double Indemnity

Payment by a life insurance policy of two times the face value when death results from an accident (e.g., an auto accident) as opposed to a health problem (e.g., cardiac arrest).

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