What Is Accidental Death and Dismemberment Insurance?
If I had to rank the number one reason clients are so angry, it is discovering they just bought accidental death and dismemberment (AD&D) and not a traditional life insurance policy. Since many potential buyers don’t understand life insurance nuances, they fall prey to the wrong brokers or agents who just sold them on the idea that they bought life insurance at the best price.
An accidental death and dismemberment policy pays a death benefit to beneficiaries ONLY if you die as a result of an accident-related event. If you had cancer, heart attack, stroke, or any disease and died as a result—you guessed it—your beneficiaries will get zilch.