Understanding the Difference Between Accidental Death and Dismemberment and Term Life Insurance

Learn more about these coverage options.worker knocked out on the ground

If you have an accidental death and dismemberment (AD&D) policy, then you might assume that you have your life insurance needs covered.  However, this isn’t really the case.  AD&D insurance and life insurance coverage, such as the coverage offered by a term life policy, are distinctly different.  To ensure that you have the right coverage to meet your needs, here’s what you need to know about these types of coverage.

  • Accidental Death and Dismemberment (AD&D) Insurance

You can purchase AD&D insurance through work, as an individual policy, or as a rider added to an existing life insurance policy.  AD&D insurance offers coverage in the event that you are injured or killed in an accident.  As the name of this insurance suggests, you will only receive coverage if the accident causes you to lose a body part or the ability to hear, see, or speak.  Oftentimes, injuries will only result in a partial payout of your policy’s benefits.

  • Term Life Insurance

Term life insurance is the most common type of life insurance policy out there.  This type of insurance offers you coverage for a set amount of time (your term) and, if you die during your coverage period, then your policy will offer compensation to your beneficiaries.  When you have term life insurance, you will have coverage, regardless of what your causes of death (with the exception of suicide).  So, you will have coverage even if your death is unrelated to an accident.

Due to the restrictions associated with AD&D insurance, you cannot rely on this type of policy alone.  If you want to provide your family financial stability in the wake of your death, then it’s far smarter to do so with the coverage offered by a term life insurance policy.

This is what you need to know about accidental death and dismemberment and term life insurance.  Looking to secure the right life insurance policy to protect you and your loved ones?  If so, then contact the experts at VGW Walker Insurance in Texas.  We are ready to get you the coverage that you need today.