AD&D vs. AccidentInsurance

As we always point out in Axis Capital Group, accidents can always happen when you least expect it but you can always be prepared.

No use filing in complaints when you have already come prepared.

The first thing that comes to mind when we think about accidents and how to prepare for them is by getting an insurancefor that special need. If you ever think of the necessity to get protection in case of injury, different coverage comes into picture.

Questions have risen about Accident Insurance and one of its counterparts,

Accidental Death and Dismemberment Insurance or AD&D.

Accident insurance will pay a benefit for a wide variety of covered injuries that may or may not be serious over the long term.

How it Works?

If you experience a covered accident, you could receive a cash benefit, according to a benefits schedule.

On the other hand, AD&D insurance provides a payment to your beneficiary if you die in a covered accident or a payment to you if the accident results in a covered loss that cause a permanent impairment. Depending on your plan, you may be able to sign up for an amount of coverage based on your salary—for example,

AD&D insurance is often offered with life insurance at an amount that is equal to the life insurance benefit. Only voluntary, AD&D insurance allows independent election of coverage.

two times your salary—or choose a set dollar amount.

• Fracture• Dislocation• Eye injury• Gunshot wound• Paralysis• Brain injury

• Burn• Coma• Concussion• Death• Dismembermen

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The following are examples of covered injuries for Accident Insurance:

What is covered?

The following are examples of covered losses:

• Death• Quadriplegia• Loss of sight in

at least one eye• Loss of speech

• Loss of hearing• Loss of limb• Loss of thumb

or index finger

Who can be covered?

Both insurances honors if election of coverage for yourself or it may also be available to your spouse of your children.

Use of benefit:Accident insurance provides a lump sum cash benefit that you can use however you want. Typically the benefit is used to help with out-of-pocket expenses such as copayments or prescriptions that might not be covered by your health insurance.For AD&D, you or your beneficiaries can spend the money however you see fit.

How Much Will I Receive?

If a claim is approved, a check is sent for covered injuries, such as fractures or dislocations. The check can be used for costs related to those injuries, such as fees for emergency room or out-patient visits. 

The benefit depends on the site and severity of the injury in addition to how the injury was treated and what coverage amount you selected when you enrolled.

On the other hand, In the event that a covered accident results in your death, your beneficiary will receive 100% of your AD&D coverage amount. The maximum amount payable for losses resulting from any one accident is 100% of the AD&D coverage amount.