What is an accidental life insurance policy

Accidental death and dismemberment (AD&D) insurance is a category of life insurance that only pays out a benefit when the insured is in a covered accident that causes death or specific serious injuries such as the loss of a limb, paralysis, or blindness.

What counts as accidental death?

What Is Considered Accidental Death? Insurance companies define accidental death as an event that strictly occurs as a result of an accident. Deaths from car crashes, slips, choking, drowning, machinery, and any other situations that can't be controlled are deemed accidental.

What are the benefits of accidental death?

Definition: Accidental death benefit and dismemberment is an additional benefit paid to the policyholder in the event of his death due to an accident. Dismemberment benefit is paid if the insured dies or loses his limbs or sight in the accident.

What is the difference between term life and accidental death insurance?

The biggest difference between term life and ADɪmp;D insurance is that an ADɪmp;D policy pays out only for a death or dismemberment caused by an accident, while a term life policy pays out regardless of the cause of death, with some exceptions.