Accidental Death and Dismemberment (AD&D) insurance is a lesser-known but useful form of coverage that pays a benefit if you’re seriously injured or killed in an accident.
What It Covers
AD&D typically pays out if you:
- Die in an accident (e.g. car crash, fall, or drowning)
- Lose a limb, eyesight, hearing, or mobility due to an accident
The benefit depends on the severity of the injury. For example, full payout for death, half for loss of a limb.
How It Works
AD&D is often included with group life insurance plans or offered as a rider (add-on) to individual policies. Some insurers also offer stand-alone AD&D policies at lower costs.
Who Might Need It?
- People in physically active jobs
- Frequent travellers
- Parents wanting low-cost supplemental coverage
Limitations to Know
AD&D does not cover deaths from illness, drug overdose, or most natural causes. It’s best viewed as a supplement to — not a replacement for — life insurance.
Should I use a Broker for AD&D
A broker can help you choose the right Accidental Death and Dismemberment (AD&D) Insurance in several ways:
- Assess Your Needs: They’ll consider your lifestyle, occupation, and activities to recommend the appropriate coverage.
- Explain Coverage: Brokers can simplify complex terms and ensure you understand what’s covered, like injury types and exclusions.
- Compare Providers: They work with multiple insurance companies, so they can help you find the best deal by comparing policies and premiums.
- Tailor Recommendations: Based on your situation, a broker will suggest the right coverage amount and extra options, like family coverage.
- Clarify Limits: They’ll explain how much you can get for different injuries or fatalities, helping you make an informed decision.
- Save Money: Brokers can help you find cost-effective coverage and discounts, ensuring you don’t pay for unnecessary extras.
- Claims Help: If you need to file a claim, brokers assist with the process, ensuring everything is submitted correctly.
- Ongoing Support: They’ll check in periodically to make sure your policy still meets your needs as things change.
In short, a broker simplifies the process, compares options, and provides support throughout the life of your AD&D insurance policy. If you would like for a licensed professional to help you explore your options, fill in a quick form below to get connected to a Canadian Insurance Broker.
Final Thought
AD&D insurance is an affordable way to add extra protection, especially if you’re concerned about accidents disrupting your family’s financial stability.
