AD&D insurance covers exactly what its name states: accidental death and dismemberment. In the event of a fatal accident or an accident that results in you losing your eyesight, speech, hearing, or a limb, AD&D will pay you or your beneficiaries a specified amount. However, there are restrictions and exclusions. To receive benefits related to an accident, your injuries or death usually must occur within a few months of the accident date. Also, you will only collect benefits if your death or injuries are proven, direct results of the accident.

Dismemberment coverage works on a “per-member” basis. If you lose one member (a hand, foot, limb, sight in one eye, speech or hearing), the company will pay 50 percent of the full benefit. If you lose two members, you will receive the whole benefit. This is available to those that work, however ours is different as the accident does not need to occur at work for it to pay out.