What is AD&D insurance (accidental death and dismemberment)?

AD&D insurance is a narrow form of coverage: it pays only when death or a specific physical loss (dismemberment) results directly from an accident, independent of illness or disease. It does not cover deaths from heart attack, stroke, cancer, or other medical conditions — even if those conditions were sudden and unexpected. The Insurance Information Institute (III) covers this distinction in its consumer education resources.

What AD&D covers

A typical AD&D policy pays the 'principal sum' (the full benefit) for accidental death, and a percentage of that sum (often 50–100%) for specific injuries. Common covered losses include: loss of a hand or foot, loss of sight in one or both eyes, loss of hearing, loss of speech, and paralysis. Policies vary — the exact schedule of covered dismemberments and their corresponding benefit percentages is specified in the policy terms.

What AD&D does not cover

• Death or injury from illness, disease, or medical conditions (including heart attacks, strokes, cancer).
• Self-inflicted injury or suicide.
• Accidents while committing a felony (in most policies).
• War or active military service (in most policies).
• Death from drug or alcohol intoxication (in most policies).

AD&D vs. life insurance

Life insurance covers death from any cause (subject to policy exclusions, typically suicide in the first two years). AD&D is far narrower. Most financial planners treat AD&D as a supplement — not a replacement — for life insurance. If your primary concern is providing for your family in the event of premature death, a term life insurance policy covers a far broader set of circumstances.

Where AD&D is commonly offered

AD&D is frequently offered as an add-on (rider) to a life insurance policy, as a standalone policy, or as a voluntary benefit through an employer. Many employer benefit packages include a small amount of group AD&D at no cost. Credit cards sometimes include a form of travel AD&D as a cardholder benefit — check the benefits guide.