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It can be very daunting to try and select the proper type of insurance since there are so many different types available on the market. But what types of issues does accidental death and dismemberment insurance actually cover?
Depending on the insurance company and the policy, AD&D insurance can cover many different accident scenarios. You don't need to get a medical examination before buying most AD&D policies, and they cover accidents that occur at work, at home, or anywhere else you go. In addition, AD&D insurance is remarkably cheap!
The standard benefits generally pay 100% for loss of life, both hands, both feet, entire eye sight, loss of both eyes, one hand and one foot, one hand and one eye, one foot and one eye, speech, hearing both ears, paraplegia and quadriplegia.
Losing a hand, foot or eye will generally get you a 50% payout. Speech or hearing loss usually pays the same. Losing two or more fingers (or a finger and a thumb) on one hand will often result in a 25% payout.
Accidental death and dismemberment also includes some additional benefits such as emergency evacuation, home renovations to accommodate disability, vehicle modifications as needed, waiver of premium, educational retraining, as well as double indemnity for paralysis or dismemberment.
Most plans offer optional family coverage for a very reasonable amount. AD&D rates are very reasonable. For example for $100,000 coverage you would pay about $1.80 a month and a family would pay about $3.50. You can buy coverage that ranges from $25,000 to $500,000.
Most of the accidental death and dismemberment insurance plans do have a few exclusions for which they will not pay out. Self inflicted injuries, attempted suicide, war, a career in the armed forces, or a career as a pilot are a few of the exclusions that are part of the policy.
Accidental Death and Dismemberment provide a lump sum payment either at the time of dismemberment or death that resulted from the accident. Some AD&D policies have a life insurance payout should a death occur. Others strictly provide AD&D benefits. Read your policy.
Any claims from an accident must be filed within one year. Claims generally require a signed certificate from your doctors as well as forms provided by the insurance company involved. The doctor will have to sign the forms from the insurance company too.
Accidental death and dismemberment insurance provides an affordable insurance option for a specific coverage. You'll need to decide if this is the type of coverage that could benefit you.
