Group Life Insurance
AD&D Coverage
Accidental Death & Dismemberment coverage pays benefits in addition to life insurance when death or serious injury results from an accident. AD&D can be bundled with life insurance at minimal incremental cost, providing a meaningful additional benefit for employees and their families.
Coverage Principle
AD&D Coverage should be reviewed against real exposure, not assumed from the coverage label.
The real issue is not whether the coverage exists; it is whether the limits, exclusions, eligibility rules, definitions, contracts, people, property, timing, and carrier requirements match how the risk actually shows up. When those details are not reviewed before renewal or enrollment, a policy can look complete on paper while the most important conditions remain unclear until someone tries to use it.
Group Life Insurance
What You Need to Know About AD&D Coverage
Death Benefit
In the event of accidental death, AD&D pays a death benefit equal to the policy face amount, on top of any life insurance benefit. This doubles the financial protection for families in cases where death results from an accident rather than illness.
Dismemberment Benefits
AD&D pays partial benefits for serious injuries resulting from accidents, loss of a limb, loss of sight, loss of speech or hearing. Benefit amounts are a percentage of the policy face amount based on the specific loss, providing direct financial support during recovery.
Low Cost Addition
AD&D coverage typically costs $0.03–$0.08 per $1,000 of coverage per month, a fraction of the life insurance premium. For employers paying the basic life premium, adding AD&D is a cost-effective way to significantly increase the value of the death benefit program.