Accidental Death and Dismemberment Insurance, also known as AD&D insurance, is an insurance coverage that’s a combination of disability and life insurance. However, it only combines limited forms of disability and life insurance. It also doesn’t cover all types of death and disability. You could obtain AD&D insurance as a rider on your life insurance or as a standalone policy. Either form is reasonably priced but comes with limited coverage.
Disability Insurance vs. Accidental Death and Dismemberment Insurance
It’s a good idea for most people to have disability insurance as a replacement for income if they become disabled and can’t work. There’s also worker’s compensation, which could help with ongoing expenses. But keep in mind that worker’s compensation would only be in effect for employees who were disabled or injured at work. Additionally, you have federal disability payments, but these only give so much regarding income.
Some individuals are fortunate enough to have affordable employee-covered group disability coverage; but some employees could only access the private market, where insurance coverage tends to be on the costlier side.
Considering all this, if you still can’t afford to buy disability insurance, an experienced financial adviser in Richland County advises that you should buy accidental death and dismemberment coverage. Although it is not the best option for a disability insurance policy with comprehensive coverage, it’s better than having no coverage at all, especially if you have a high-risk job.
Also, if your AD&D insurance is a rider on your life insurance plan, you get double indemnity. This means that if you pass away in an accident, the beneficiaries of your policy would be given the full value of your payout from your life insurance plan, along with the full payout from your AD&D plan.
The Bottom Line
Get AD&D insurance coverage for an affordable price or through your employer. You’re essentially adding extra protection for you and your dependents. Likewise, if it’s the only type of disability insurance policy, you could comfortably afford. Do note however that you should still consider getting a life insurance policy instead of limiting yourself to AD&D coverage. If you’re healthy and young, you could take advantage of low premiums.