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AD&D vs. Life Insurance



Stephen L. Thomas
By Stephen L. Thomas | October 24, 2023 | In

When it comes to protecting oneself and loved ones from the uncertainties of life, insurance plays a crucial role. Two common types of insurance that often lead to confusion due to their similar nature are Accidental Death and Dismemberment (AD&D) insurance and life insurance. While both offer financial security, they serve different purposes and provide coverage under distinct circumstances. Accidental Death and Dismemberment (AD&D) insurance is a type of coverage that specifically addresses accidents resulting in death or the loss of limbs, sight, hearing, or other bodily functions. In the unfortunate event of an accident that leads to death or severe injuries, the policyholder or their beneficiaries receive a lump-sum payout. This coverage is often offered as an additional rider or policy alongside life insurance or as part of an employee benefits package. AD&D insurance is tailored to provide financial support in cases of unexpected accidents. If an accident results in the policyholder’s death, the beneficiaries will receive the policy’s designated payout. If the accident causes dismemberment, such as the loss of a limb, the policy will pay out a specified portion of the coverage

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