Life and AD&D (2024)

FAQs

What is life with AD&D insurance? ›

An accidental death and dismemberment (AD&D) insurance policy can help protect your family's finances in the event of the loss of your life or limb(s). It can be an affordable way to supplement your life insurance or medical coverage if you're seriously injured or die as a result of an accident.

Accidental death and dismemberment (AD&D) insurance is a category of life insurance that only pays out a death benefit when the insured is in a covered accident that causes death or specific serious injuries such as paralysis, the loss of a limb, eyesight, hearing, or speech.

Do I need both life insurance and AD&D? There's no need to purchase life insurance and AD&D coverage because a voluntary life insurance policy covers the same causes of death as an AD&D policy as well as many others.

Accidents that occur while a person is engaged in illegal activities or under the influence of drugs and alcohol will probably not be covered. Similarly, if accidents occur during the practice of a dangerous hobby such as ice fishing or during travel through a war zone, there is a good chance AD&D may not cover them.

If the policyholder dies in an accident, the beneficiary may receive payouts from both the main life insurance policy and the rider. This is called double indemnity.

AD&D can supplement life insurance because it will pay out if you lose a limb or eyesight, or other non-death injuries covered by the policy.

AD&D insurance may be worth it if you're at a higher risk for critical injury or death due to an accident because of your profession or activities. But always look for exclusions in an AD&D policy. Some AD&D insurance policies may not cover accidents caused by certain high-risk activities, such as skydiving.

Every insurer will differ in this respect, but generally, your policy will pay out 100% of its value in the event of your accidental death. If you are dismembered, the policy will typically pay out on a per-member basis. For example, loss of one eye might be worth a 25% payout, both eyes could be 50%.

Accidental Death & Dismemberment (AD&D) is a plan that pays a benefit if you lose your life, limbs, eyes, speech or hearing due to an accident. Full-time regular staff are eligible for AD&D coverage. You enroll as a new hire by using My VU Benefits.

Basic life insurance coverage under Choices pays benefits to your beneficiary(ies) if you die from most causes while coverage is in effect. Accidental Death & Dismemberment (AD&D) insurance coverage adds low-cost accidental death protection by paying benefits in the event your death is due to accidental causes.

What does life insurance not cover? ›

Life insurance doesn't typically pay out in these circ*mstances: Murder: If your beneficiaries murder you or are closely tied to your murder, they won't receive the death benefit, per the slayer rule. Suicide: A payout won't apply if you commit suicide within the first two years of purchasing your policy.

Basic Life and AD&D Coverage

Half of the full coverage amount will be paid if you suffer a loss of one hand, one foot or sight in an eye, or loss of your speech or your hearing. You are not required to provide evidence of insurability – or proof of good health – for basic life and AD&D coverage.

AD&D insurance often excludes deaths or injuries resulting from health-related incidents. This can include pre-existing medical conditions, illnesses, or complications arising from chronic health issues. It's essential to carefully review your policy to determine the specific health-related exclusions that may apply.

AD&D insurance includes coverage for fatal and nonfatal accidents involving dismemberment or loss of eyesight or hearing. With most policies, benefits are paid in addition to life insurance or other coverage you may have and surviving beneficiaries may use the money however they wish.

Accidental death and dismemberment (AD&D) insurance is usually added as a rider to a life insurance policy. AD&D insurance pays benefits in the case of a person's accidental death or dismemberment: the loss—or loss of use—of body parts or functions.

AD&D insurance may be worth it if you're at a higher risk for critical injury or death due to an accident because of your profession or activities. But always look for exclusions in an AD&D policy. Some AD&D insurance policies may not cover accidents caused by certain high-risk activities, such as skydiving.

So, if your goal is to provide your family with a financial safety net regardless of how you die, life insurance is the right purchase. AD&D could be a good supplemental life insurance policy, especially if you can get it free through your employer.

A traditional life insurance policy provides money to your designated beneficiary regardless of the cause of death (except suicide within the first two years of owning the policy). An AD&D insurance policy only pays for accidental death or accidental injuries that meet the requirements for a claim.

Accidental Deaths: An unexpected and unplanned death. Dismemberments: The loss of an entire body part, such as a limb. They may also refer to the use of a specific body part, and its function, like vision, hearing or speech.