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Accidental Death and Dismemberment insurance cover the abrupt death or dismemberment of the insured. The dismemberment includes the loss of body parts such as limbs, eyesight, hearing and so on. This insurance has a limited coverage, therefore the buyers should cautiously read the terms and conditions of the insurance properly.
Accidental death and dismemberment insurance is limited and usually covers improbable events. The insurance policy consists details about the terms and percentage of the various benefits and cover special circumstances. For instance, if the demise of an insured person occurs from injuries or an accident, but the death must happen within a specified period to avail the benefits.
If an insured come across an accidental death, then the insurance company will pay the benefits. But it will be only up to a set amount regardless of any other insurance held by the insurer. This is known as indemnity coverage, which is available when accidental death insurance is only added to a regular Life Insurance plan.
This insurance includes some accidents like traffic accidents, exposure, falls, heavy equipment accidents and drowning.
In the case of dismemberment, the insurance company pays a percentage for the loss of the limb, partial or permanent paralysis, loss of the body parts such as loss of sight, hearing or speech, etc. The type of injuries is covered and the amount paid by the insurer and package may vary.
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Each Insurance companies provide a list of circumstances of accidents, such as - suicide, death from illness, natural causes and injuries in the war. The most common exclusion in the insurance contains death from an overdose of toxic substances, injury of an athlete during a sport event and death from non-prescription drugs. Apart from this, if an insured loss happens due to the illegal act, then no benefit will be payable.