Does “Accidental Death” Cover Me on the Job?

Accidental Death & Dismemberment (AD&D) insurance can be purchased as its own, separate policy, but more often it is purchased as an endorsement or rider on a life or health insurance policy in order to provide extra protection. What it does is exactly what it sounds like - bringing in a fairly large amount of money to you if you are accidentally killed or lose a limb such as an eye, hand, arm, leg or your hearing as a result of an accident. There are significant limiations on when AD&D insurance will pay out, however, making the cost of owning it questionable under most instances due to its limitations despite the inexpensive nature of this insurance.

Accidental Death Coverage

If you suffer from a fatal accident or an accident that results in your death within three months time, as long as none of the restrictions or exclusions have been triggered, Accidental death insurance will kick in and provide a payment to your beneficiaries for the coverage amount. What makes this insurance questionable in its worthiness is that there are other insurance coverages that provide a death benefit such as this with fewer restrictions, less hassle and generally for about the same price or just a little more, such as a simple term life insurance policy. For the price you would pay for a standard AD&D rider on your insurance policy you can add a little more to it and have a decent life insurance policy that is worth more and you won’t have to worry about whether or not you will be covered after certain types of accidents.

The dismemberment part of AD&D coverage pays you half of the full benefit amount if, as a result of an accident you lose a member (hearing, sight or the loss of speech count). If you lose more than one member from the same accident you will receive the full benefit amount. If you suffer partial loss or paralysis, you will receive an amount that can vary based on the significance of your injury or loss. Part of the limitations on this type of insurance stipulate that if you are involved in an accident that results in your death or dismemberment, it must happen within three months of the accident or you may not receive payment.

Exclusions

Normally excluded from most AD&D policies is death from “risky” activities such as bungee jumping, skydiving, driving a race car and of course participating in military action. Also excluded are death by disease, during surgical procedures, infections, drug overdoses and a few other minor details which makes it critical that you read the fine print for the terms and conditions when signing up for this type of insurance plan.

Unless you work in a traditionally risky environment, AD&D coverage will typically cover you even while you are on the job if you suffer a serious enough accident that results in your death. If you are a stunt person, however, or working on an oil rig, you will want to speak with an insurance agent about possible workplace exclusions before you sign up for this type of insurance policy. Under normal circumstances you will be covered by Workers’ Compensation insurance provided by your employer (at no charge to you), which will provide some levels of protection and assistance to you if you are ever seriously injured while on the job.