What Is Accidental Death And Dismemberment For Cheap Life Insurance?

By Patrick Cooper Posted in Life Insurance News

Sometimes we have no other recourse than to buy cheap life insurance. In these cases you could protect yourself even further buy adding an accidental death and dismemberment clause to the policy. This can be added to even term life insurance, and is a great way of getting that extra protection needed at a smaller cost.

Accidental Death and Dismemberment Riders can Be Added to Cheap Life Insurance
The accidental death and dismemberment riders as there are called, are also referred to as AD&D riders, or multiple indemnities. This means that an insurance company will pay a face value of a policy plus an additional sum should the insured person die in an accident. This additional amount will depend on the AD&D rider amount that you added to your cheap life insurance policy.

Dismemberment Is Also Covered

However these multiple indemnities will also cover other things besides death. For instance, should you be in an accident, and lose your sight or one, or more of your limbs then the insurance policy will pay out for this dismemberment. OF course, you need to check the provisions of your policy as different carriers have different stipulations for this clause and there is a specific time frame in which the policy has to be in effect before this payment can be received. The coverage period depends on the state where the policy is sold, however most insurance companies have at least a 90 day waiting period for this stipulation to go into effect.

No Crimes Or Deliberate Deaths Are Covered

However AD&D riders will not cover a death if a crime or illegal act has been committed. It will not cover the person if there is a suicide, or a malfunction of the body (for instance, someone who suffers a stroke while driving). In this case only the death benefits would be covered but not the accidental death benefits. If dismemberment occurs then the amount paid would depend on the dismemberment. For example, if only one limb is lost then only half of the death benefits would be paid.

Related posts:

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  2. What Is The Difference Between Accidental Death Vs Whole Life Insurance?
  3. What Are Low Cost Endowments For Cheap Life Insurance?
  4. Shopper’s Checklist For Buying Life Insurance At A Low Cost Discount
  5. What Is A Double Indemnity Clause For Low Cost Life Insurance?

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