Both accidental death and dismemberment (AD&D) insurance and life insurance can offer important coverage. Knowing what these types of insurance cover can help you decide which type of policy is best for your needs or if having both is appropriate.
Do I need both life insurance and AD&D?
An accidental death and dismemberment (AD&D) insurance policy can help protect your family’s finances in the event of the loss of your life or limb(s). It can be an affordable way to supplement your life insurance or medical coverage if you’re seriously injured or die as a result of an accident. Keep in mind AD&D is not a substitute for life insurance, but could be a good supplemental policy. Coverage from a Term or Whole Life Insurance policy can help reduce the stress and pain your family faces after you die, and you can no longer financially contribute to the household.
AD&D versus life insurance
Here’s a breakdown of what each policy type covers.
| The situation | Life insurance | AD&D |
|---|---|---|
|
Death due to illness (e.g., stroke or heart attack), disease (e.g., cancer) or natural causes |
Yes |
No* |
|
Death due to an accident or unnatural causes (e.g., traffic accidents or falls) |
Yes |
Yes |
|
Death due to drug overdose or suicide (See paragraph below.) |
Yes |
No |
|
Loss of a limb, sight, hearing or speech (See paragraph below.) |
No |
Yes |
|
Loss of use of limb(s) due to partial or permanent paralysis (See paragraph below.) |
No |
Yes |
*Under a basic AD&D policy, the insurer does not cover death due to an illness like stroke or heart attack, or a disease such as cancer. However, with the purchase of an appropriate rider, the insurer may cover death related to these kinds of illness or disease.
Keep in mind life insurance policies pay benefits for suicide only after the policy has been in force for at least two years. Check your policy for exact details. AD&D will only pay a portion of the face value for the loss of use of a limb, sight, hearing, speech or paralysis. The extent of injuries covered are particular to and defined by the insurer, and policy.
LGFCU, through TruStage®, can help with affordable life insurance coverage and no-cost or low-cost AD&D coverage. Contact us at 800.814.2914 for more information about securing your family’s financial future.
TruStage® insurance products and programs are made available through TruStage Insurance Agency LLC. Auto and home products are issued by leading insurance companies. Discounts are not available in all states and discounts vary by state. Life insurance and AD&D insurance are issued by CMFG Life Insurance Company. These insurance products are not deposits and are not federally insured. This coverage is not sold or guaranteed by your Credit Union.