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Frequently Asked Questions

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Illustration of a AD&D Insurance FAQ

AD&D Insurance FAQ

What does “AD&D” mean?

“AD&D” stands for “accidental death and dismemberment.”

What is AD&D insurance?

AD&D Insurance provides coverage in the event that the insured has died suddenly or has lost a limb in an accident.

What does AD&D insurance cover?

An AD&D policy pays beneficiaries a fixed amount of death benefits should the insured suddenly die. It also pays a specified amount of benefits based on severity to the insured if he or she loses a limb, loses sight, loses hearing, loses the ability to speak, or has other covered injuries as a result of an accident.

How is AD&D insurance different from a life insurance policy?

AD&D insurance is usually supplemental to a life insurance policy as a rider, but it can be its own separate policy. AD&D can provide additional coverage during a person’s term life insurance policy to further help out their beneficiaries in the event of their death. It could also help the insured get covered for any lost wages and the cost of adjusting to a new lifestyle should they lose a limb or become severely injured.

What constitutes “dismemberment” in an AD&D policy?

Dismemberment in an AD&D insurance plan typically include the loss of one or both hands, feet, arms, and legs. The majority of these plans extend dismemberment coverage to include the loss of sight in both eyes, loss of fingers, hearing loss, losing the ability to speak, and full or partial paralysis. Depending on the severity of the injury and the number of injures acquired, you may receive a partial payout or the full amount. It is important to read through an AD&D policy to see what particular type of dismemberment coverage is being offered to you and how payouts are calculated.

Do I need AD&D insurance?

Most of the time a person’s life insurance policy can cover their death. However, people who work in a profession or area where there is a higher risk of accidental death or maiming injury should consider buying AD&D coverage. While accidents are rare, it can help provide protection and peace of mind if something goes horribly wrong.

When should I get AD&D insurance?

Many employers provide AD&D insurance for their employees in case an accident occurs at the workplace, so it can be affordable to get coverage or add coverage for yourself if your job offers it. If you work in a high-risk profession such as construction, you may want to get AD&D coverage since your life insurance premiums will likely be higher than most. If you engage in certain hobbies such as wood carving or metal working, you may want AD&D coverage just in case something goes wrong.

What isn’t covered by AD&D insurance?

Most AD&D plans won’t cover deaths or injuries caused by the following:

– Suicide/suicide attempts

– Drug overdose

– Mental illness

– Drunk driving

– Participation in a felony

– War

– Complications from surgical procedures

– Participation in high-risk recreational activities such as sky-diving and race car driving

There may be other exclusions listed on your policy, so be sure to read it and consult an insurance agent to make sure you thoroughly know your policy’s limitations.

How much does AD&D insurance cost?

Most AD&D plans are affordable and low in price due to the typically lower chance of the insured experiencing an accident that causes a dismembering injury or sudden death. Some premiums can cost as little as $60 per year. However, all AD&D rates vary due to you age, profession, activities, environment, and other factors that calculate your risk.

Is AD&D taxable?

AD&D proceeds are not taxable. However, you should consult a tax advisor for further advice and information regarding AD&D payouts.

Where can I buy AD&D insurance?

Freeway Insurance can help. Freeway can provide fantastic AD&D coverage to tack on your life insurance plan or independent plans that can give you peace of mind. Just give us a call or get a free AD&D insurance quote online to get started.