Have you ever wondered what your chances of dying in an accident are? Well according to the CDC, accidents are the 5th leading cause of death in America. It only trails causes like heart disease, cancer, lung and respiratory diseases and strokes.
This is why Accidental Death & Dismemberment or AD&D Insurance should be a part of your financial portfolio. Especially for Americans age 25-44 years of age.
Accidental deaths in 2017 only accounted for 5.4% of deaths in the United States. But deaths of Americans age 25-44 was 30.2% in 2017.
The top 5 death caused by accident in 2017 were:
- Car Deaths- 40,321
- Fall- 36,388
- Suffocation- 5,216
- Drowning-3,709
- Fire, Flames, and Smoke- 2,812
What is AD&D Insurance?
An Accidental Death & Dismemberment policy will pay a cash benefit to your loved ones if you die as a result of a covered accident, such as car accident or a fall.
If you suffer from complete or partial dismemberment due to an accident that is covered, you will receive a percentage of the benefit based on your policies coverage. Here are some examples:
Most Accidental Death & Dismemberment Insurance provide a benefit between $20,000 and $500,000 and can be written through your employer’s benefit package or as an individual policy.
Certain exclusions do apply to AD&D Insurance policies such as injury caused by suicide, drug overdose, or high risk behaviors. It varies by insurance company, so it’s important to know what is covered and isn’t.
Companies that offer Accidental Death & Dismemberment Insurance
Prudential
Prudential offers an employer benefit Accidental Death & Dismemberment Insurance policy with the option to add your family. Most employers pay for the premium for you, but have an option to add your loved ones for an additional premium. You would be responsible for the additional premium.
You can also by AD&D Insurance from Prudential as a stand alone policy or as a rider to any of their term life polices. Options that are available for the rider are:
- Additional benefit if you die in a car while having your seat belt on and your vehicle is equipped with airbags
- Losses due to coma, exposure, disappearance, felonious assault or spouse/domestic partner joint death
- Spouse/Child tuition reimbursement and surviving spouse benefits
Coverage is offered in all 50 states and Prudential boasts an “A+” Superior rating from A.M. Best. They also have been in business since 1875
Mutual of Omaha (MOO)
Mutual of Omaha AD&D coverage is an added option to an employer term life insurance plan. MOO offers three options with their AD&D Insurance plans.
- Family Suite
- Education benefit for your spouse up to $3,000
- Childcare benefit for covered child care expenses
- Continuation of coverage that remains in effect for 12 months after death
- Travel Suite
- Adds a seat belt benefit which pays 10% more with a maximum of $25K
- Airbag benefit up to $25K
- Double benefit up to $1million if accident occurs while on public transportation
- $5,000 in repatriation fees for transportation of loved ones remains
- Catastrophe Suite
- Pays for paraplegia, hemiplegia, quadriplegia, triplegia or uniplegia, also known as the paralysis benefit.
- Pays an extra 10% for home and vehicle modification
- Pays 5% if you are in a coma for at least 20 months
- Hospital confinement income
- Up to $25,000 benefit for felonious assault with injuries.
Mutual of Omaha was founded in 1909 and offers coverage in 44 states. It has a strong financial rating of “A+” Superior with A.M. Best.
AIG Direct
AIG Direct has three AD&D Insurance polices that it offers to consumers in the United States. They are:
- Accident Expense Plus: This AD&D policy is designed to fill the gaps that your healthcare policy does not, such co-pays or deductibles. This plan covers accidents as well as some critical illness’.
- AccidentCare Direct Plus: This policy is guaranteed issue and guaranteed renewable AD&D policy. It covers death, dismemberment, and paralysis with 24 hour protection and lump sum benefits.
- AG Accident Choice Plus: This Accidental Death & Dismemberment policy covers a wide range of accidents. It also covers costs for surgery, emergency room visits, physical therapy, and some diagnostic testing.
AIG is a large company doing business in more than 100 countries. Since 1926 it has sold insurance in the United States and holds an “A” rating with A.M. Best
Aflac
Aflac is one of leaders in the AD&D Insurance arena. They offer Accident Death & Dismemberment Insurance through employers. These policies provide cash benefits for accidents and recovery costs such as emergency treatment, medical transportation costs, and lodging.
They also offer “One Day Pay” which is a feature that offers to pay your claim in one business day after your accident. This helps you pay bills and living expenses while recovering from your accident.
More than 50 million people worldwide own an Aflac supplemental policy. Aflac has an “A+” Superior rating with A.M. Best.
Sun Life Financial
The AD&D Insurance offered by Sun Life Financial is a rider added that matches the value of your life insurance policy or you may choose an amount lower. You can also choose an amount based on your salary, such as two times your annual salary.
Sun Life Financial AD&D Insurance provides coverage for:
- Losses due to accidental injury
- Loss of speach or hearing
- Quadriplegia
- Paraplegia
- Loss of sight
- Loss of limbs, thumb, and index finger
Founded in 1865, Sun Life Financial holds an “A+” Superior rating with A.M. Best and does business in all 50 states.
MetLife
The AD&D Insurance offered by MetLife can be employer paid, employee paid, or a combination of both. Benefits are paid for:
- Loss of life by an accident
- Loss of speech, hearing, or sight
- Paralysis
Some of their standard and optional benefits include:
- Airbag and seat belt coverage
- Accidents on public transportation
- Child daycare and education
- Spousal Education
- COBRA continuation
- HIV
- Parental care
- Rehabilitative physical therapy
- Workplace felonious assault
MetLife boasts “A+” Superior rating with A.M. Best. They offer coverage in all 50 states and nearly 50 countries worldwide. MetLife was founded in 1868.
Farmers
Accidental Death & Dismemberment Insurance from Farmers offers coverage from $50,000 to $200,000. It pays for accident related expenses and lost wages. You can purchase coverage up to $1,000,000 for common carrier accidents (accidents on public transportation).
Farmers AD&D Insurance has no waiting period for the coverage to begin and guaranteed issue for applicants ages 18-59. Costs for $100,000 of coverage starts at $8/month.
Founded in 1928, Farmers has an “A” rating with A.M. Best and offers coverage in all 50 states.
Transamerica
Transamerica offers two Accidental Death & Dismemberment Insurance products:
- Plan A: This plan provides a benefit up to $250,000 for accidental death and doubles to $500,000 if accident occurs on public transportation
- It also offers accidental coverage to spouses for $125,000 and $5,000 for children for an additional premium.
- Plan B: The benefit for this plan is up to $25,000 for accidental death and increases to $250,000 for accidents on public transportation.
- It also offers accidental coverage to spouses for $75,000 and $5,000 for children for an additional premium.
Transamerica has been covering consumers across America since 1928 and has an “A+” Superior rating with A.M. Best.
Fidelity Life
The Accidental Death & Dismemberment Insurance offered by Fidelity Life offers coverage of $50,000 to $250,000 starting at $10 per month. Issue ages are 20-59 with the full death benefit being paid to age 70 and then reduces 50% until expiration at age 80. Riders are available for spouse and children for an additional cost.
Fidelity Life was founded in 1896 has an “A-” Excellent rating with A.M. Best. Fidelity Life provides coverage in all states except New York and Wyoming.
The Hartford
The Accidental Death & Dismemberment Insurance policy offered by The Hartford provides 24 hour protection for a covered injury, paralysis, or death. They also pay for losses that occur within 365 days of the covered accident.
Also covered under The Hartford AD&D Insurance plan is:
- Loss of speech or hearing
- Loss of hands or feet
- Loss of sight
- Loss of thumb or index finger and loss of movement
You can purchase this plan through your employers benefit package on a voluntary or stand alone basis. The Hartford has been covering Americans since 1810 and has an “A+” Superior rating with A.M. Best.
My Thoughts
While Accidental Death & Dismemberment Insurance can be an asset in your overall financial portfolio, it should never be used to replace your life insurance, disability insurance, or healthcare. It should always be used a supplement.
Be sure to find out what is excluded before purchasing an AD&D policy. Some employers offer this coverage to their employees for free. If you can get extra coverage for free, it certainly makes sense to do so.
Many life insurance companies allow you to add an AD&D rider to your existing life insurance policy for an additional premium. This may be a cheaper option than purchasing a stand-alone AD&D policy.
If you think additional, AD&D coverage may be right for you, shop around and compare coverage options and pricing to get the best value. If you have any questions or comments please don’t hesitate to give us a call.
What companies offer the best AD&D Insurance?
The companies that offer the best AD&D Insurance policy are:
Mutual of Omaha
Transamerica
Fidelity Life
The Hartford
Aflac
Farmers
MetLife
What is AD&D Insurance?
An Accidental Death & Dismemberment policy will pay a cash benefit to your loved ones if you die as a result of a covered accident, such as car accident or a fall.
If you suffer from complete or partial dismemberment due to an accident that is covered, you will receive a percentage of the benefit based on your policies coverage.
What does AD&D stand for?
AD&D is short for Accidental Death & Dismemberment Insurance.
Should I buy an AD&D Insurance policy?
If you are looking to supplement your current life insurance policy then an AD&D policy may be a good fit. Never replace your traditional life insurance policy with an AD&D policy.
