Accidental Death and Dismemberment

Insurance paying benefits for death or specific injuries, such as loss of limbs or sight, caused by accidents.

Overview

Payouts for partial losses are set as percentages of the face amount, and the coverage is cheap because accidents cause only a small share of deaths in developed countries. Common exclusions include illness, suicide, overdose, death while driving drunk, and risky aviation. It is sold as a rider on life policies and as standalone coverage through payroll plans, and is often criticized as poor value because it duplicates only a narrow slice of mortality risk. Beneficiaries must prove the accident caused the loss, so documentation matters. It can make sense for people in hazardous occupations, but most families are better served putting the same dollars into broader life insurance.