10 Companies Offering Accidental Death and Dismemberment Insurance

An AD&D Policy Pays a Cash Benefit to Beneficiaries

Caregiver helping older man walk on crutches. Getty Images/Jose Luis Pelaez Inc

What are your chances of dying in an accident? According to statistics from the Centers for Disease Control and Prevention, accidents are the fifth leading cause of death in the United States, only behind the leading causes of heart disease, cancer, respiratory diseases and strokes.

You have no doubt given thought to what would happen to your loved ones in the event of your untimely demise due to some sort of accident.

Financial hardships and other losses can make this time of personal grief especially trying. Life insurance is meant to give you peace of mind—assuring that your family will be taken care of should something happen to you. However, you may have special circumstances or wish to obtain more coverage than a standard life insurance policy can provide. For these special cases, an accidental death and dismemberment (AD&D) insurance policy is an option to consider when choosing the right type of life insurance.

The Accidental Death and Dismemberment Insurance Policy

An AD&D policy will provide a cash benefit to your beneficiaries if you die as the result of a covered accident or suffer a partial or complete dismemberment due to a covered accident. AD&D insurance will pay for accident claims in addition to any primary insurance coverage you have such as disability insurance or your employer’s workers compensation insurance that would pay for a dismemberment caused by a work-related accident.

Typically, a policy will provide $20,000 to $500,000 in coverage and may be written on an individual policy or through an employers’ benefits package. In a death claim for a covered accident, the full benefit amount is paid. For a limb dismemberment or loss of eyesight, these payments are made as “scheduled payments” or a certain percentage of the principal policy coverage amount.

There are certain exclusions that apply to most AD&D policies such as an injury caused from a suicide attempt, death from surgery, drug overdose or harming yourself intentionally in some way. Other exclusions may also apply and vary by insurance company.

10 Insurance Companies Offering AD&D Policies

  1. Prudential: Prudential Insurance offers an employer benefit AD&D policy with an option to add a spouse and children. Depending on your employer, the premium for yourself may be paid with the option to add your dependents for an additional premium you would pay. The AD&D policy through Prudential is available as stand-alone coverage or as a supplement added to a standard term-life insurance policy. You can add a rider on your policy for these options: additional payment if dying in a car while properly using a seat belt in a vehicle equipped with airbags; losses due to coma, exposure, disappearance, felonious assault or employee/spouse/domestic partner joint death; spouse or child tuition reimbursement and surviving spouse benefits.
  2. Mutual of Omaha: Mutual of Omaha’s AD&D coverage is provided as an added option to an employer term life insurance plan. There are three different optional riders: (1) Family Suite—Provides a spouse education benefit up to $3,000, a child education benefit up to $5,000, a childcare benefit of up to $5,000 for covered child care expenses and a continuation of coverage option so that coverage remains in effect for the spouse and dependent children for up to 12 months after death; (2) Travel Suite—This option adds a seatbelt benefit which pays an additional 10% up to a maximum of $25,000; an airbag benefit up to $25,000; a double benefit up to $1,000,000 if the accident occurs in public transportation and $5,000 in repatriation fees for transportation of remains; (3) Catastrophe Suite—Pays a paralysis benefit if a covered injury results in paraplegia, hemiplegia, quadriplegia, triplegia or uniplegia; pays an additional 10% for vehicle or home modification; 5% additional for coma up to 20 months; hospital confinement income and up to a $25,000 benefit payment for felonious assault injuries.
  1. AIG Direct: AIG Direct offers these AD&D plans: (1) Accident Expense Plus—Designed to fill the gaps your medical plan does not cover in the event of a covered accident or a critical illness; (2) AG AccidentCare Direct Plus—A guaranteed issue and guaranteed renewable policy for death dismemberment and paralysis. This policy gives you 24-hour protection and lump-sum indemnity benefits; (3) AG Accident Choice Plus—Provides additional coverage for a wide range of accidents and covers costs for surgery, physical therapy, diagnostic exams and emergency room visits.
  2. Aflac: Aflac offers an accident insurance policy through employers providing cash benefits for accident care and recovery costs including emergency treatment, medical transportation costs, lodging and more. This pan includes a feature called One Day Pay which can give you cash as soon as the next day after an accident to help with bills and other living expenses while you are recovering after an accident and unable to work.
  1. Transamerica: Two accidental death policies are available through Transamerica: Plan A—Provides a benefit up to $250,000 for a covered accidental death which doubles to $500,000 for common carrier (public transportation) accidents; Plan B—Has a benefit amount of $25,000 for a covered accidental death which increases to $250,000 for common carrier accidents. Spouses and children can be added to either plan for an additional premium. The rider adds an additional payout of $125,000 for spouses and $5,000 for children when added to Plan A. The Plan B rider pays out $75,000 for spouses and $5,000 for children.
  2. Fidelity Life:  The Accidental Death Benefit Insurance policy from Fidelity Life provides coverage of $50,000 to $250,000 and is available for as little as $10 per month. The policy is available to individuals ages 20 through 59. A full death benefit is paid up until age 70 and is then reduced to 50% of the face value of the policy until it expires at age 80. Riders are available to cover children and spouses.
  3. Farmers: AD&D coverage from Farmers Insurance provides coverage from $50,000 to $200,000 to pay for accident-related expenses and lost wages.  The cost of $100,000 of coverage is only $8 per month. There is no waiting period for coverage to being. For a death caused by a common carrier accident, there is coverage for up to $1,000,000. Coverage is guaranteed for applicants ages 18 to 59.
  4. The Hartford: The AD&D policy from Hartford provides 24-hour protection for a covered injury, paralysis or death and will pay for losses occurring within 365 of the covered accident. Under this plan coverage is included for loss of life, loss of speech, loss of hearing, loss of hands, feet or sight, loss of thumb or index finger of either hand and loss of movement. The plan is provided through employers to employees on an employer-paid, voluntary or stand-alone basis.
  5. MetLife: MetLife AD&D insurance pays benefits on claims resulting from a loss of life, speech, hearing or sight, paralysis and other losses. It is provided as an employer-paid, employee-paid option or a combination of both. Standard and optional benefits include coverage for airbag, seat belt, common carrier, child care center, child care education, spouse education, hospitalization, COBRA continuation, HIV, job-related injury, parental care, rehabilitative physical therapy, repatriation of remains, therapeutic counseling and workplace felonious assault.
  6. Sun Life Financial: Sun Life Financial offers AD&D insurance to match the value of your life insurance policy or you may choose a different amount. You have the option to choose an amount based on your salary (an example would be two times your annual salary) or you can choose a set dollar amount. The policy provides coverage for losses due to accidental injury, speech and hearing, quadriplegia, paraplegia, loss of sight in one eye, speech, hearing, loss of limb (arm or leg), thumb and index finger. In the event a covered accident results in your death, your beneficiary will receive 100% of your coverage amount.

Alternatives and Considerations

For most people, AD&D will not be their primary coverage but rather a supplemental policy to provide additional coverage not offered by a standard life insurance policy. Keep in mind that an AD&D policy pays out only if your death is caused by a covered accident. You are more likely to die from some other cause that is not covered including cancer, heart attack or some other illness. Also, some exclusions apply to policies such as accidents resulting from dangerous activities including car or motorcycle racing, sky diving, and other high risk activities. Be sure to find out what is excluded before purchasing an AD&D policy.

Some employers offer this coverage to their employees for free. If you can get extra coverage for free, it certainly makes sense to do so. Many life insurance companies allow you to add an AD&D rider to your existing life insurance policy for an additional premium. This may be a cheaper option than purchasing a stand-alone AD&D policy. You will need to shop around and compare insurance rates and coverage options to get the best value on a policy if you decide that additional AD&D coverage is the right choice for you and your family.