What You Need to Know
We all understand the importance of carrying life insurance, particularly if you have a family that depends on your income. But if you were to have bad accident that left you with the loss of a limb, eyesight or hearing, you would be unable to rely on it to replace your lost income.
Fortunately, such a scenario may be avoided with an accidental death and dismemberment (AD&D) rider to your life insurance policy. This optional rider enhances the underlying life insurance, which will pay a death benefit if the insured dies from any cause (except in committing a felony, or by suicide).
If the insured dies from an accident, the AD&D rider pays an additional amount.
On top of the accidental death benefit protection, the rider pays out a cash benefit in case of the loss of a limb, eyesight, hearing or speech. This can be very important because even though the insured doesn’t die, the injury may cause a permanent disability and loss of income. There may be some significant medical bills, as well.
You can use the cash AD&D benefit under the following circumstances: Accidental Death & Dismemberment and Your Life Insurance