Accidental Death and Dismemberment: Is it health insurance?

Benefit Insurance Services of Myrtle Beach, SC knows the ins and outs of health insurance and we want you to, too. Your employer may include <a href=“https://www.insurance.com/life-insurance/coverage/accidental-death-and-dismemberment-insurance.aspx”>accidental death and dismemberment (AD&D)</a>  insurance in your benefits package or you may have just heard of it and wondered what it covers. This blog explores the coverage of accidental death and dismemberment insurance, one type of health insurance that also provides life insurance benefits. It is both.

If you die as a result of an accident, AD&D pays your beneficiary the full benefit of the policy which makes it similar to a life insurance policy. However, if you incur injuries that result in the loss of a limb,  your eyesight, hearing, limb or speech, AD&D pays the amount specified in the policy. This provides a significant lump sum payout to fund health care, including your hospital stay, long-term care or rehabilitative care. The dismembering event must occur within months of the accident date. You also must be able to prove that the injury was a direct result of the accident.

Typically, you will receive a 50 percent benefit for the loss of one hand, foot, limb, sight in one eye, hearing or speech. Similarly, with partial or complete paralysis, policies pay 25 to 50 percent. If you lose two limbs, the policy pays the full benefit. 

While we at Benefit Insurance Services of Myrtle Beach, SC hope you never need your accidental death and dismemberment insurance, it does provide a safety mechanism that pays for a lengthy hospital stay as well as rehabilitative care. It also provides a significant benefit if you die in an accident which can provide your beneficiary with income to live on after your death.