Accidental Death or
Dismemberment

A Small Price to Keep Your Workplace Safe Against the Worst Possible Scenario

Like some worker slipping and falling from a scaffolding in a construction site. It’s really scary, but it does happen… a lot.

Accidental Death or Dismemberment Insurance (or AD&D Insurance) is a low cost way to avoid a tragic situation. Every year people die within the US from preventable accidents, the main being automobile accidents, falls, unintentional poisoning. AD&D insurance covers out-of-pocket costs for these events and is most recommended to employees or employers within:

What is Accidental Death and
Dismemberment Insurance?

Accidental Death and Dismemberment (AD&D) insurance refers to a cover policy that acts as a rider to the conventional life assurance or health insurance against loss of body part or death caused by accident. This policy covers the insured against loss of a body part, loss of functions of specific body parts or death due to an accident. This implies that the policy guarantees compensation to the beneficiaries if the cause of death or the loss of body parts and functions is purely accidental. This insurance policy should thus be understood to be an add-on to the standard life insurance cover.
It is thus imperative to note that this policy does not cover the insured from any natural cause of accidents or intentional bodily injuries. You may gain full understanding of AD&D as you go through the separate terms as described below.

Accidental Death

When Accidental Death and Dismemberment endorsement is added to existing life insurance, the designated beneficiaries will get the benefits from both covers if the insured dies of an accident. In the end, the beneficiaries receive compensation twice the amount prescribed in the life insurance cover. This scenario makes those who have the AD&D enjoy a double indemnity after the insured passes on due to an accidental death.

Dismemberment

In dismemberment, AD&D policy guarantees percentage compensation when the insured loses a limb, suffers paralysis, coma, or when specific body parts are incapacitated. The insurer sets the policies to specify the nature and the extent of body injuries contained in this cover. These injuries only warrant compensation if they only occur in an accident. It is essential to note that AD&D policy is limited to cover unlikely events of risks to supplement common life insurance. It should thus not be taken as a policy to substitute conventional life insurance.

AD&D insurance is best recommended for those who work in a high risk field
(construction, oil rig worker, lumberjack, fisherman, etc.)
Now that we know what AD&D Insurance is, it is also important that we learn
about what the scope and rates of this service are.

What does Accidental Death and Dismemberment Insurance cover?

The dismemberment aspect of this policy is designed in such a way that it compensates the insured “per lost member” of the body and its appendages. This implies that the insurer may not give the total amount insured but part of it.

The AD&D insurance gives a percentage of compensation when the insured suffers permanent or partial paralysis. It also provides a fraction of the benefit when the insured loses specific parts of the body. This criterion also applies when the body parts lose their functions or are incapacitated in the event of an accident. Partial or permanent loss of hearing, sight, or speech also falls under this mode of compensation.

The AD&D policy compensates 100% of the policy amount when the insured suffers a combination of limb loss and loss of critical bodily functions that include hearing or sight at least in one ear or eye.

On the other hand, the accidental death provision of AD&D cover allows the beneficiaries to get the benefits if the insured dies after sustaining injuries from an accident. However, the death should happen during the time specified in the policy for the insurer to give the beneficiaries the due compensation. The various accidents covered under this policy include:

  • Traffic accidents
  • Exposure to hazardous elements
  • Homicide
  • Accidental falls
  • Accidents from heavy machinery
  • Drowning

The risks that AD&D policy covers are always outlined in the insurance policy and may stipulate different offers among the insurance firms. The policy also specifies the exclusions and exemptions of the types of accidents that do not warrant compensation. There is thus a great need to go through the terms of the policy that your preferred insurer set as you consider this cover.

If you are an employer of this type of work, it is recommended you purchase this type of insurance plan.

Accidental Death and
Dismemberment Insurance Rates

The AD&D insurance rates are, in most cases, lower than those of a normal life insurance cover. Such rates can be much less than what you may term as affordable for life insurance policy rates. Your task here is to identify a firm with accidental death and dismemberment insurance rates that you can pay without unbearable financial constraints.

Finding an ideal AD&D plan is quite easy, especially when you are armed with the right information on what you want. If you are an employee in a company, there is a high likelihood that your employer provides AD&D cover to employees as a benefits package. This policy is among the most commonly offered benefits at workplaces. Employers offer group plans that give employees a chance to include their spouses and children in the cover.

The AD&D insurance premiums are always linked to the cost of the coverage that you buy. The average rate of premium however, differs from one insurance firm to the other. Thus, it is always imperative to shop around as you compare the policies to get the ideal insurer with accidental death and dismemberment insurance cost that you can readily afford.

Various insurance firms sell standalone AD&D insurance policies where you can readily insure yourself and your family. The online firms offer you a chance to apply and obtain your insurance instantly. The companies with physical offices, on the other hand, have a seamless process where you just fill in a simple form and get you covered with no strain.

Alternatively, you may opt to work with an insurance agent who can compare various policies to select the best that suits your specific needs. The other option is getting this insurance cover as a rider to your life insurance policy.

Now, you may still have some doubts whether this service is necessary for you or not, as you should.

So, let’s take another look at its benefits on a different angle and have an example to give you a better perspective on it.

Accidental Death and Dismemberment Insurance:
Is it really Worth it or Not?

The response as to whether Accidental Death and Dismemberment insurance warrants acquisition is certainly a big YES. The merits linked to this insurance plan cannot be overestimated as it combines disability policy and life insurance where you or the listed beneficiaries benefit. This makes the policy essential to people from different age groups as unforeseen accidents can occur to anyone. The young and the working category of people benefit greatly from AD&D policy since they are likely to get accidents or injuries resulting from the work they do.

The benefits obtained from the accidental death cover can assist your family in replacing the lost income.

AD&D premiums are relatively inexpensive which makes it easy to acquire.  The policy can greatly help through regular monthly payments up to a certain percentage in case the insured is hospitalized and gets into a coma due to an accident.

In the event of permanent disability, the insurer gives the family a lump sum amount as benefits from the policy for caregiver reimbursement and other needs.

A standalone AD&D policy is indispensable to young workers who are statistically known to be more prone to die from an accident than a natural illness. With this policy, you will benefit significantly even if you do not have individual life or disability cover.

When AD&D is purchased as a rider to a life policy, the beneficiaries get twice the death compensation when the insured succumbs to an accident. You are entitled to this benefit as a result of the double indemnity aspect of this policy.

AD&D insurance can also help you to recoup part of your income in case you lose sight, hearing, or a limb that renders you unable to work. This makes AD&D essential for the employees whose work relies on their physical abilities.

The other appealing aspect is that you do not need a medical examination to obtain AD&D cover. This feature indicates that you cannot be denied coverage due to your health. All you need is to meet the age requirement set in the policy by the insurer, and you will get the cover real quick.

Accidental death and dismemberment insurance provide an ideal solution to those seeking suitable insurance against death or dismemberment resulting from accidents. The key to acquiring the right choice is choosing a reliable insurance firm. Luckily, the information provided above will lead you to make an educated choice. However, it is vital not to take AD&D cover as a replacement for your existing disability or life insurance plans.

What if something like this happens?

Disaster strikes! An employee at your construction company has dismembered a hand causing irreparable damage.

Immediate surgery is needed: Your employee is rushed into surgery with a critical condition, then will spend the next 2-3 weeks in hospital. The hospital bills are stacking up to hundreds of thousands.

That’s gotta hurt your pockets for sure.

Fortunately…

CleverPolicy steps to ease the burden. Thanks to your AD&D insurance, the 6 figure hospital bill and potential legal fees is dramatically reduced. Your out of pocket expenses are paid out in full.

You receive your money fast and easy: Thanks to your claim you now have your money back.

Your Total Cost would be $100

..Luckily, for you CleverPolicy has your back.
$500.00

SAVING YOU

Cost less than a cup of coffee at Starbucks.
You deserve the peace of mind
 
Close Bitnami banner
Bitnami