Accidental death and dismemberment (AD&D) insurance, sometimes also called double indemnity, can often be added to a life insurance policy as a rider for a small additional premium. This coverage may provide a payout if the insured suffers a catastrophic injury or dies due to a covered accident.
Why Add AD&D Coverage to Your Life Insurance Policy?
With life insurance, the policy’s beneficiaries must file a claim to get a payout after the insured person dies. After adding AD&D coverage to a life insurance policy, the insured person has additional financial protection if they suffer specific catastrophic injuries, which may include the following:
- Partial or permanent paralysis
- Loss of use of certain body parts
- Loss of a limb
- Loss of eyesight, hearing or speech
Individual insurers set the terms of an AD&D policy, so your coverage may vary. The policy may pay up to 100% of the life insurance policy’s death benefit, depending on the extent of the insured person’s injuries and the terms of the AD&D policy.
If the insured person dies in a covered accident, an AD&D policy that includes double indemnity coverage may pay twice the death benefit of the associated life insurance policy.
Who Are the Advantages of AD&D Coverage?
AD&D insurance provides limited coverage and can be a valuable addition to a life insurance policy. There are a few distinct advantages of AD&D coverage, including:
- Applicants do not undergo medical underwriting to get approved for AD&D coverage so long as they meet the insurer’s age requirements.
- The approval process for AD&D coverage is usually fast.
- Premiums for AD&D coverage are typically low.
- Double indemnity policies provide twice the death benefit if the insured person dies in a covered accident.
Your agent can help you decide whether adding an AD&D rider to your life insurance policy or buying a standalone AD&D policy would be a good fit for your situation.
How to Get AD&D Insurance in California
Redwood Credit Union (RCU) members may be eligible to receive access to various insurance products, including no-cost life insurance, with the option to add low-cost AD&D coverage. Contact RCU Insurance Services in Santa Rosa, California, to request your custom life insurance policy with AD&D coverage.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.