Accidental Death and Dismemberment Insurance Pros and Cons

Insurance Policy

There are a few accidental death and dismemberment insurance pros and cons you should consider before buying. This kind of insurance is known as AD&D insurance and is usually -but not always- a rider attached to another policy for life or health.

The Basics

Accidental death and dismemberment insurance helps you with financial hardship caused by an accidental death, which includes any kind of accident, homicide, or drowning. If you die from natural causes or suicide, you are not covered under this particular policy provision.

AD&D insurance also pays out for dismemberment or blindness. It may also cover paralysis, hearing loss, or loss of speech. Dismemberment includes losing fingers and any part or all of a limb. If dismemberment accidents are common where you work, then this insurance might be a good idea.


The four options that are available for AD&D insurance are:

  • As a rider on your life insurance policy
  • As a separate and voluntary policy
  • As dependent coverage, and
  • As business travel insurance.

About Accidental Death and Dismemberment Insurance Pros and Cons

When you have to make the decision of whether or not to purchase accidental death and dismemberment insurance, you need to consider the price, options, your age, and how many risks you take. An explanation about accidental death and dismemberment insurance pros and cons can help.


One of the good things about accidental death and dismemberment insurance is the cost. Premiums are fairly cheap and the benefits are easy to understand. You have the choice of adding AD&D insurance to another policy or buying it as a separate policy. AD&D insurance has a set amount for the benefits so there are no surprises. Dependents can be beneficiaries for the insurance policy and the payout for dismemberment covers loss of all or part of a limb, blindness, deafness, loss of speech, and paralysis.

Two more good things about AD&D insurance is that you do not have to have good health to qualify and it can be cancelled whenever you want. AD&D insurance also pays in addition to any other insurance you have.


In covering the accidental death and dismemberment insurance pros and cons, it is important to also have an explanation about the "cons" of this insurance.AD&D insurance is very limited and there is a set amount paid for a benefit. It pays out according to the number of limbs lost. For example, if you lost sight in one eye, you are paid a certain amount. If you lost your sight in both eyes, the benefit would be more. Most people would do better to purchase life insurance, workman's compensation, or health insurance for more complete coverage. You might even consider long term health insurance or burial insurance.

Another "con" is AD&D insurance doesn't pay for death caused by illness (physical or mental), suicide, hernias, surgery, or accidental drug overdose. Along those same lines, you have to prove to the insurance company that death was indeed accidental. If the person who is covered takes unnecessary risks, then he or she may not be covered. Examples of unnecessary risks include extreme sports such as racing cars, sky diving, or hand gliding, to name a few.

In addition, this type of insurance has no cash value.

Making the Decision

You should take into consideration your age when thinking about obtaining accidental death and dismemberment insurance. It is true that in the United States, the fifth leading cause of death is from an injury sustained during an accident. However, it is the leading cause of death for those under the age of 44. So if you are 45 or older, you chance of dying from natural causes is higher than dying from an accident.

Another thing to consider is your lifestyle and the type of work you do. If you are a risk taker, you will need to read over the AD&D policy very carefully to make sure at least some of your activities are covered. If you work in an industry where serious accidents are commonplace, then it may be well worth it to buy this type of insurance.

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Accidental Death and Dismemberment Insurance Pros and Cons