What is an accidental death and dismemberment (ADandD) policy designed to provide?

An accidental death and dismemberment (AD&D) policy is specifically designed to provide benefits in the event of accidental injuries or death resulting from unforeseen events. This type of insurance offers financial protection to the insured or their beneficiaries if the insured suffers a severe injury, such as the loss of limbs, or if the insured dies as a result of an accident.

AD&D policies typically do not cover deaths or injuries resulting from natural causes, illnesses, or pre-existing conditions, which is why the focus is on "accidental" events. Therefore, the scope of coverage is limited to situations where the death or injury results directly from an accident, making this policy distinct from other types of life insurance or health insurance products that may offer broader coverage.

By focusing only on incidents deemed accidental, AD&D policies are more straightforward and often more affordable than comprehensive life insurance that covers a wider range of circumstances, including natural death or chronic illnesses.