Should You Have Accidental Death And Dismemberment Insurance?

Should You Have Accidental Death And Dismemberment Insurance?

July 03, 2019

Are you looking to protect yourself and your dependents from untimely death or injuries due to an accident? Accidental Death and Dismemberment (AD&D) insurance can be an effective and affordable tool to protect your beneficiaries. This tool is usually a rider to life insurance policies. Riders are benefits that can be purchased in addition to the original insurance or an annuity policy. 

Be sure to thoroughly understand the coverage policies and terms as these complex plans can greatly vary per company.

What Is AD&D Insurance?

AD&D insurance can be referred to as a double indemnity rider as it’s generally added on to a life insurance policy. It adds extra protection and gives your beneficiary two sources of income in case of untimely death or dismemberment. However, most insurers cap the maximum benefit a beneficiary is entitled to, but these payments generally mirror the life insurance plan’s face amount. For instance, a beneficiary would receive a life insurance payment with the AD&D payment matching the original life insurance face-value payout.

Besides death, AD&D plans cover dismemberment accidents like losing limbs, eyesight, hearing, or the loss of a bodily function. While most plans cover fundamental dismemberment accidents, these can vary based on each policy.

Life Insurance Vs. AD&D Insurance

Life insurance can be seen as the cake, with AD&D insurance being the frosting. If you had to choose between the two, life insurance could be a better choice as it covers more common misfortunes like death due to illness or old age. However, AD&D plans could be right for your situation if you have many dependents or you work in industries with high equipment injury rates such as manufacturing.

Since AD&D claims are much lower than standard life insurance claims, these policies have cheaper premiums. Due to this, many employers subsidize basic AD&D coverage for their employees. In this case, it could be prudent to sign up for your employer’s plan. 

Common AD&D Insurance Exclusions

While most AD&D plans cover events like homicides, falls, traffic incidents, and drowning, they have some common exclusions. These exclusions can be death or dismemberment due to suicide, drug overdose, war injuries, or felonious acts. Most policies have this condition in common, but others add in provisions for professional sporting events. Some other exclusions include participating in risky activities, such as car racing and skydiving. Other less common and risky examples include hernias along with bacterial infections. Like most insurance companies, AD&D providers evaluate risky activities and determine if it fiscally makes sense to cover each one.

The Bottom Line

Choosing a proper AD&D plan can protect your family in case of accidental death or injury. It can also cover dismemberment, which includes losing hearing, eyesight, or limbs. Therefore, this insurance would help you provide for your family if you were no longer able to work, but carefully examine each policy’s rules, regulations, and payment terms and compare to others before making your final decision. These policies can be helpful, but be sure to have a solid life insurance plan in place first. Also, AD&D plans can be very intricate, which is why it makes sense to consult a financial planner or insurance broker. 

Do you have questions regarding accidental death and dismemberment insurance? For a free, no-pressure consultation, contact us at (626) 529-8347 or email Ricky directly at

About Haydel, Biel & Associates

Haydel, Biel & Associates is an independent financial advisory firm serving individuals and families near Pasadena, California. The firm was founded in 2004 by Chris Haydel and Ricky Biel with a desire to provide unbiased, client-centered, community-based financial advice. Together, they have built a practice that has grown into a family of caring, smart professionals committed to blending proven investment methodologies with creative financial technologies that make it easier than ever to accomplish your goals. They strive to keep things simple and fun to give their clients peace of mind and alleviate financial stress. HBA Wealth takes care of their clients’ needs first and foremost and goes the extra mile to make their clients’ finances grow. To meet and see how the HBA Wealth team may be able to help, contact them today at (626) 529-8347 or email Ricky directly at