How is accidental death and dismemberment coverage different from life insurance?
A. While life insurance typically provides benefits to an individual’s family no matter how a death occurs, accidental death and dismemberment coverage provides benefits to victims and their family only in the case of an accident – for example, a car accident or a work accident. It does not provide benefits, for instance, for individuals who die naturally or due to an illness. And unlike life insurance, accidental death and dismemberment coverage provides benefits if the insured loses a limb, speech, hearing or sight from an accident. One of the real values of accidental death and dismemberment insurance comes from its low cost for high coverage amounts.
Related Questions
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