Accidental Death and Dismemberment (AD&D)

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Accidental Death and Dismemberment (AD&D) Accidental Death and Dismemberment (AD&D) insurance is a type of insurance that provides financial protection to the policyholder's beneficiaries in the event of the policyholder's accidental death or dismemberment. AD&D insurance can be purchased as a stand-alone policy or as part of a life insurance policy. AD&D insurance typically covers the following: -Accidental death: If the policyholder dies as a result of an accident, the beneficiaries will receive a payout. -Dismemberment: If the policyholder loses a limb or limbs in an accident, the beneficiaries will receive a payout. -Paralysis: If the policyholder is paralyzed in an accident, the beneficiaries will receive a payou One main difference between AD&D and life insurance is that an AD&D policy offers financial security if you were, for example, to lose a limb, an eye, ear or in an accident whereas life insurance would not, in other words, a major life-changing loss that does not result in death. Under AD&D coverage, the beneficiary of the policy will only receive benefits if the death was “accidental,” for example, death caused by a car accident, truck accident, motorcycle accident, mechanical malfunction, malpractice or any other type of accident. The amount of the payout will vary depending on the policy's terms and conditions. However, most AD&D policies will pay out a lump sum benefit to the beneficiaries. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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