Pros & Cons of Getting an Accidental Death & Dismemberment Insurance

Getting an insurance is not only lengthy, but also a costly process, granted that the benefits are endless.  While all insurances are costly and offer pretty much the same benefits, Accidental Death and Dismemberment (AD&D) insurances differ in some aspect.

What is an Accidental Death & Dismemberment Insurance?

The AD&D policy is simple – paying benefits to the recipient, in case the cause of death happens to be an accident. Although similar to life insurance, the AD&D insurance is not as expensive. In such a case, where the death is confirmed to be an accident, the insurance is bound to pay benefits along with any life insurance. However, the amount would be set in advance and that is the most the insurance will pay, despite there being any other insurances that are held by the insurer.

The accidents that are covered by AD&D insurance are homicide, drowning, road accidents, falling from heights, exposure, or construction accidents. Although many might not be aware of Accidental Death and Dismemberment Insurances, it is still widely acclimatized to by now due to the fact that the leading cause of death is mostly accidents.

However, there are also accidents that the insurance does not cover, which include: suicide, injuries in war, natural causes, non-commercial radiation, death while intoxicated, overdose, athletic injuries, and death by illness.


In cases of dismemberment, the Accidental Death & Dismemberment Insurance pledges to pay fractional amounts. This is applied when the person has lost body parts such as eyes, fingers, limbs, permanent paralysis, as long as the damage was caused by an accident. However, the body parts that are insured may differ based on the package and the insurer.

The Pros & Cons of Accidental Death & Dismemberment Insurance


There are plenty of benefits of opting for AD&D insurance. Often times, when companies take their employees anywhere on basis of work, they offer the AD&D insurances to their employees, in case of any accident that might occur while they’re there. The greatest benefit of the insurance plan is its capability to cover for unforeseen circumstances.

The most appealing part for AD&D insurances is to the ones that are young and are less likely to die from an illness in comparison to accidents. This can be rather beneficial to the families of those. AD&D also covers those who have lost some body parts and are unable to work and earn as they used to. The leading cause of death in Australia happens to be from accidents, so the AD&D insurance can really help you prepare for the worst in advance.


Even though you acquire a plethora of benefits with AD&D insurance, there are also some limitations attached. The insurance plan has a list of things that can be counted as accidents and then a list that does not make you accountable to the insurance plan. This is one of the reasons why AD&D is seen as poor investment by financial advisors, and therefore, should not be substituted as a life insurance due to the limitations.

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