What Are The Differences Between Accidental Death And Dismemberment insurance And Life Insurance?

The main difference between AD&D insurance and life insurance is the types of events they cover. Both provide coverage in the case of the death of the insured, although accidental death and dismemberment insurance, as the name suggests, only covers a death if it is caused by an accident, as defined in the policy. AD&D Policies define accident differently and all have various types of exclusions, such as intentional acts, self-inflicted injuries, and medical conditions that cause or contribute to an accidental death.

AD&D insurance is usually added to a standard insurance policy, as a rider or supplemental insurance. AD&D insurance generally does not stand on its own, but rather as a product added on to a standard policy. Death benefits for an accidental death are not included in a standard life insurance policy, but having AD&D coverage on top of the standard life policy provides for an additional benefit for an accidental death covered by an AD&D policy.

Is A Sudden Death Because Of Illness Considered An Accidental Death?

Accidental death and dismemberment policies exclude coverage for death resulting from a sudden onset of illness. Similarly, if the insured person undergoes medical treatment and subsequently passes away, the death may be excluded from AD&D coverage. The Covid-19 pandemic has brought this factor into a new light as it relates to AD&D insurance. Because Covid-19 is a medical condition, death resulting from Covid-19 will likely be excluded from coverage under most AD&D policies. However, if the exact cause of death is uncertain and whether death is caused by an underlying condition or if some other cause cannot be determined, the matter may need to be litigated to determine whether AD&D coverage applies or is excluded. It is critical that if you believe you have an AD&D claims resulting from an accidental death, you should consult an accidental death insurance lawyer to assist you to determine if you have a covered claim. Many times we find that persons who think they do not have a valid accidental death insurance claim actually do have a valid claim.

What Is A Dismemberment Claim?

Dismemberment coverage applies when a covered person loses a body part or function, or loses the use of a body part or function. Examples of dismemberment that AD&D may cover include:

• Permanent or partial loss of limb or limbs
• Permanent or partial paralysis of limb or limbs
• Loss of speech
• Loss of eyesight
• Loss of hearing

However, coverage varies from policy to policy. The exact coverage will be delineated in the policy.

In cases where an underlying condition contributes to an injury, the many courts will follow what is called a substantial contribution standard. This means that if injuries result from an accident (like a car accident) and require an amputation, the courts will have to determine if the insured had any underlying condition that substantially contributed to the need for amputation. If so, the amputation would be excluded from coverage. If not, there may exist a valid accidental death insurance claim.

If The Deceased Person Was Partially At Fault In Causing The Accident, Does Their AD&D Insurance Still Apply?

As noted above, AD&D policies come with a list of applicable exclusions, which typically include self inflicted injuries or death and deaths occurring in the course of committing a crime. For example, if an insured with AD&D insurance slips, falls, and dies while they are robbing a bank, their death would be excluded from coverage. However, an exclusion will not apply to AD&D coverage unless it is specifically and clearly notated in the policy. Insurers always have the burden of proving the applicability of any exclusions in their policies.

Should I Have Both Life And AD&D Insurance?

Having both life insurance and AD&D insurance is not always necessary but it is recommended. The cost of AD&D insurance is low because the risk of accidental death is low for the average American. Given a choice between the two, life insurance offers a much more stable and secure financial plan if you or a family member pass away. But if you have a job or live a lifestyle that carries a higher risk of accidental injury or death, you should consider AD&D insurance in additional to traditional life insurance.

The dedicated and knowledgeable accidental death insurance attorneys at McKennon Law Group PC are available and ready to answer questions you may have about life insurance, AD&D insurance, and how the two differ. McKennon Law Group PC offers free initial consultations, so you risk nothing by contacting us with your questions.