Accidental death and dismemberment insurance (AD&D)

A policy can protect your family if you're in an accident — but not if you get sick.

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Accidental death insurance can help provide for your loved ones if you’re injured in an accident. But if you want to make sure your family is covered no matter what happens to you, you may be better off with a traditional life insurance policy.

What is AD&D insurance?

AD&D insurance is made up of two types of coverage: an accidental death policy that pays out a lump sum to your beneficiaries if you die in an accident, and a dismemberment policy that pays out if lose a limb, finger or toe in an accident.

While AD&D insurance pays out if you die or are seriously injured in an accident, it won’t pay if you die from an illness, disease or underlying medical condition.

What’s an AD&D rider?

Along with offering standalone policies, many life insurance companies allow you to add an AD&D rider to your coverage for a fee. With this rider, your beneficiaries will receive an additional payout if you die in an accident specified in the policy. And if you lose a limb or digit as a result of a covered accident, you’ll receive a payment.

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When does AD&D pay out?

Typically, AD&D policies only kick in if you’re killed or injured in an accident. But if you’re injured, you may only receive part of the full benefit.

Say you lose an arm in an accident. You might get 50% of your policy’s proceeds. If you lose a thumb, you could get 25%. The exact payouts vary between providers, and will be listed in your policy.

Does AD&D apply?
Death from an accident, like a car crash
checkmark
Loss of sight, hearing or a limb due to an accident
Partial payout
Loss of a hand, foot, fingers or toes due to an accident
Partial payout
Loss of two limbs
checkmark
Quadriplegia as the result of an accident
checkmark
Paraplegia as the result of an accident
Partial payout
Death due to disease or illness
x
Death caused by a drug overdose
x
Death by suicide
x

How common are accidental deaths?

According to the CDC, people between the age of 25 and 34 are at the highest risk for dying from an accident, closely followed by people in the 45–54 range.

AccidentsNumber of deaths in 2016
Poisoning58,335
Car accidents40,327
Falls34,673
Hanging, strangulation and suffocation6,610
Drowning3,786
Exposure to smoke, fire and flames2,730
Gun accidents495

Source: National Vital Statistics Report Volume 67, Number 5 (published July 2018)

How is accidental death insurance different from life insurance?

Though life insurance will cover dying in an accident, it can also pay out if the insured is diagnosed with a terminal illness or dies from a disease or medical cause. It’s generally more expensive than accidental death insurance, but your family will be taken care of no matter how you die. Since the coverage is more comprehensive, life insurance is more expensive than AD&D insurance.

Along with being cheaper, accidental death insurance is easier to qualify for, making it a popular option for people who aren’t eligible for a life insurance policy. The application is simpler, too. You won’t need to take a medical exam, and some providers can even offer same-day coverage.

AD&D insurance vs disability insurance

Disability insurance replaces a percentage of your income if you become fully or partially disabled and can no longer work. The key difference between the two types of coverage is that disability insurance covers illness as well as injury. Given that illness is the major cause of disability, a disability policy is likely to apply to more situations than an AD&D policy.

AD&D insurance vs accident insurance

Accident coverage is a component of AD&D insurance, but you can also purchase a standalone policy with less restrictions. Also known as “personal accident insurance” or “supplemental accident insurance,” this policy pays out a lump sum if you die or get injured in an accident — even if the injury isn’t serious. To compare, an AD&D insurance only pays out if you sustain a serious injury or die in an accident.
While accident insurance can provide protection, the benefit limits are typically low. In most cases, you’re better off purchasing health insurance or disability insurance to safeguard yourself in case of an accident.

How are premiums determined?

Your premiums will be based on how likely you are to die in an accident. Your insurer will factor in your:

  • Age. Some age groups are statistically more likely to die in an accident.
  • Gender. Men will generally have higher premiums.
  • Occupation. Applicants with high-risk occupations will likely pay more for insurance.
  • Hobbies. People with high-risk hobbies, like motorcycle riding and rock climbing, will generally pay more.
  • Policy. The amount you’re insured for, how often you make payments and what benefits your plan offers will all affect your premiums.

What should I look for in a policy?

Features to look for when comparing policies include:

  • Benefit amount. Decide how much coverage you need and look for a company that help.
  • Guaranteed acceptance. Many policies won’t require any medical underwriting.
  • Guaranteed renewable. Some policies guarantee that you’ll be eligible for renewal if you make your payments on time.
  • Worldwide coverage. Look for a policy that covers you anywhere in the world so that your loved ones will be protected if you’re in an accident while traveling.
  • Accidental injury benefit. Consider whether you need an accidental death and dismemberment (AD&D) policy, which will pay out a percentage of your benefit if you’re seriously injured.
  • Car accident benefit. Some policies will pay an additional amount if the policyholder dies as a result of a car accident in which they were wearing a seat belt.
  • Indexation. Look for a policy with a benefit that increases each year to keep up with inflation.
  • Discounts. Some policies will offer a discount if you take out joint coverage with a spouse, increase your level of coverage or bundle it with your other insurance policies from the same company.

When am I not covered?

Exclusions will vary from policy to policy, so read the contract carefully before signing anything. Common exclusions include death or dismemberment by:

  • War, hostilities or civil unrest
  • Bungee jumping or skydiving
  • Suicide
  • Drunk driving
  • Drug-impaired driving
  • Complications from surgery
  • Drug overdoses
  • Recklessness
  • Accidents while engaging in an illegal act
  • Accidents while participating or training in professional sports

To collect your policy, your beneficiaries will need to prove that a) your death was directly caused by an accident and b) occurred within a certain timeframe after the accident. The limit is usually three months.

Compare policy providers that offer accidental death insurance

Name Product Issue Ages Coverage Range Medical Exam Required State Availability
18 - 85 years old
$10,000 to $10,000,000+
Depends on provider and policy
All 50 states
Compare affordable quotes from 12+ A-rated life insurance companies side-by-side.
20 - 80 years old
$25,000 to $10,000,000
No
All 50 states
Quickly get a quote for coverage with this marketplace, which compares term & whole life insurance policies from 45+ carriers.
25 - 60 years old
$100,000 to $5,000,000
No
Available in all states except for Montana
Offers term life insurance with accelerated underwriting. No-exam coverage up to $1,000,000 for those who qualify.
18 - 80 years old
$50,000 to $25,000,000
Depends on provider and policy
All 50 states and D.C.
Get a quote within minutes from more than a dozen insurers.
18 - 60 (or 55 for smokers)
$50,000 to $350,000
No
Lifefy is not available in the following states: Hawaii, Illinois, Massachusetts, Minnesota, Montana, New Hampshire, New Jersey, New York, Oregon, Pennsylvania, Puerto Rico, Utah, Virginia, Washington
Offers quick, affordable Term and Guaranteed issue life insurance. Coverage up to $350,000. Only available in 38 states.
eCoverage
eCoverage
25 - 83 years old
$25,000 to $1,000,000
Depends on policy
Get a term life quote from eCoverage - starting at as low as $15 per month.
18 - 75 years old
$100,000 to $5,000,000
Depends on provider and policy
Currently unavailable in New York
Apply for a simple instant-decision policy free of charge. Compare quotes from multiple A-rated carriers.

Compare up to 4 providers

Bottom line

Accidental death insurance can provide peace of mind for people who don’t qualify for or can’t afford traditional life insurance. But if you’re relatively healthy, you may be better off comparing life insurance policies to find a more comprehensive option that fits your budget.

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