A TRUSTED INDEPENDENT HEALTH INSURANCE GUIDE SINCE 1999.
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Call our agency partners 866-553-3223
A TRUSTED INDEPENDENT HEALTH INSURANCE GUIDE SINCE 1999.
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Proposed rule would bring sweeping changes to Marketplace enrollment, eligibility
A proposed federal rule issued this week would, if finalized, bring wide-ranging changes for the Affordable Care Act’s health insurance Marketplace, including a shorter open enrollment period in all states.

accidental death and dismemberment insurance

accidental death and dismemberment insurance. A type of insurance that provides a lump-sum payment to you or your beneficiaries if you're involved in an accident that results in your death or a permanent injury that's specifically covered in your policy.

What is accidental death and dismemberment insurance?

Accidental death and dismemberment insurance (AD&D) is a type of insurance that provides a lump-sum payment to you or your beneficiaries if you’re involved in an accident that results in your death or a permanent injury that’s specifically covered in your policy.1

AD&D policies do not cover illnesses, or non-fatal accidental injuries that aren’t specifically covered by the policy. Typically, AD&D policies cover death, loss of vision, hearing, or speech, loss of a limb, or paralysis. The maximum payout is the face value of the policy, which is paid to the plan member’s beneficiaries if the accident results in death. A specified percentage of that amount (for example, 25 percent or 50 percent) would be paid for things like loss of eyesight or loss of a leg.

AD&D is not the same thing as accident insurance. Accident insurance is a supplemental policy that will pay a pre-determined amount when you incur medical costs due to an accidental injury. But unlike AD&D, the injury does not need to result in permanent damage in order to trigger a payout.

So for example, an accident insurance policy might reimburse you for some of your out-of-pocket costs stemming from an emergency room visit for a broken arm, even though the arm can be expected to fully recover. An AD&D policy, on the other hand, would not provide benefits in that situation (benefits could be payable under an AD&D policy if the arm were to require amputation, as that would result in a permanent loss of the limb).

Footnotes

  1. "Life insurance vs. AD&D insurance" Progressive. Accessed Oct. 1, 2024 

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