Accidental Death & Dismemberment Insurance: Another Crucial Coverage

Posted on: October 14, 2019 by Javier iSure

Employees place tremendous value on the benefits that their employers make available to them, knowing that these coverages are much more affordable when purchased as group life insurance. Spreading the risk among many lives using a master insurance contract allows for significantly less expensive premiums.

Accidental death and dismemberment insurance (AD&D) can be found as part of a group life insurance policy. Dismemberment includes the loss, or the loss of use of body parts or functions (e.g., limbs, speech, eyesight, or hearing). The AD&D policy contains a schedule that details the terms and percentages of the various benefits and covered special circumstances. For instance, if an insured dies from injuries that occurred from an accident, the death must occur within a specified period for benefits to be paid.

Access to group life insurance policies is a definite perk that resonates with employees. Whether you elect to pay premium costs, share them or pass them on directly, employees will appreciate the peace of mind this policy offers. 

Accidental Death

After securing an AD&D rider, also known as a double indemnity rider, to a life insurance policy, the designated beneficiaries receive benefits from both in the event the insured dies accidentally. Generally, benefits cannot exceed a certain amount. A cap must be put on the amount payable under these circumstances. Since most AD&D payments usually mirror the face value of the original life insurance policy, the beneficiary receives a benefit twice the amount of the life insurance policy’s face value upon the accidental death of the insured. Accidental death insurance will typically cover exceptional circumstances, such as exposure to the elements, traffic accidents, homicide, falls, drowning, and accidents involving heavy equipment.  


Typically, the AD&D policy pays a percentage for the loss of a limb, partial or permanent paralysis, or the loss of use of specific body parts, such as the loss of sight, hearing, or speech. The types and limitations of injuries covered are particular to and defined by each individual policy. It is pretty rare for a policy to pay 100 percent of the policy amount for anything less than a combination of the loss of a limb and the loss of a major bodily function, such as sight or hearing in at least one eye or ear. Speak to your group life insurance provider to better understand how this coverage is crucial to your business.  

About iSure Insurance Brokers

After serving leaders in the Greater Miami market for more than three decades, iSure Insurance Brokers has become the provider of choice for discerning commercial clients and individuals alike. Because no two insurance programs are or should be alike, you can be sure that iSure will craft a comprehensive approach to protection that is as unique as you are. We welcome the opportunity to protect what you have worked so hard to build. Please contact us at (305) 223-2533 to learn more about what we can offer you.

Posted in: Blog Employee Benefits Life Insurance