What is accidental death insurance?

February 27, 2023

Every year nearly 40,000 people in the United States die in motor vehicle crashes. It’s a hard statistic to read, but one everyone should know. As much as we don’t want to think about it, tragic accidents can and do happen. The consequences to loved ones can be devastating, both emotionally and financially. That’s why Accidental Death and Dismemberment (AD&D) insurance exists.

AD&D is a type of insurance rider, meaning it’s additional coverage you can purchase and add onto your policy. If you pass away in an accident—whether it’s a vehicle crash, drowning, homicide, or another type of tragedy—your loved ones can receive an additional payout on top of your normal life insurance policy. These funds can help ease the financial and emotional burden of a tragedy.

An AD&D payout can be used to help pay for:

It can even be used to help pay for counseling and support needed during the grieving process.

Plus, a payout in the case of dismemberment

AD&D insurance can also kick in if you experience the loss of a limb, become paralyzed, or lose your ability to see, hear, or speak during a tragedy. Most policies pay a percentage of the benefit, depending on your specific loss. But even a percentage of the benefit can help ease the pain and financial burden of such an injury.

The pros and cons of buying AD&D insurance

AD&D insurance can help support your family and other loved ones on top of what they will receive from your life insurance policy. This additional policy, coupled with your primary life insurance, is known as double indemnity, and it usually costs very little per month. However, in the event of a tragedy, the payout can make a world of a difference—especially if you’re the primary breadwinner, and your salary will no longer be there for your family.

It's also beneficial if a horrible accident causes you to lose a limb or another part of your functioning. In this case, you probably won’t be able to work in your full capacity, and you may lose your primary income. AD&D insurance can help make up the difference and pay for medical bills and much more.

Considering the low cost of AD&D insurance, we don’t believe there are many disadvantages to purchasing a policy except one—it only pays out during specific accidents. For example, it will not apply if you die from natural causes, such as illness or a heart attack. It also won’t pay out if you overdose from toxic substances or while using illegal drugs. Your best bet is to talk to one of our insurance specialists to find out the full list of exclusions.

When the unthinkable happens, Lumico is here

We don’t like to think about terrible tragedies happening. But the truth is, they can happen and do. Fortunately, AD&D insurance is relatively low-cost compared to other policies and can make a huge difference in the wellbeing of your loved ones following a tragedy. In most cases, it makes sense to add this policy as a rider to your existing plan. It’s better to be prepared because you never know what could happen in the future.

And, if the unthinkable does happen, know that Lumico is here for you and your loved ones. Our professionals are compassionate, communicative, and organized—so your family can focus on grieving and healing in the days ahead.


Life Insurance Tips

7 times in life when it's important to adjust your life insurance policy

Sure, you have life insurance now, but did you know you should review it every so often, and

February 14, 2022

Life Insurance Tips

3 reasons why life insurance is a smart way to invest and protect your loved ones

You already have a savings account and a 401(k), not to mention that Social Security check. So why

July 07, 2022

Life Insurance Tips

3 smart reasons why a final expense policy is worth it

Did you know the average cost of a funeral or celebration of life service is between $7,000 and

February 02, 2023

What else can we help you with?