Understand the differences between AD&D insurance and life insurance

Man walking with an arm brace.

Both accidental death and dismemberment (AD&D) insurance and life insurance can offer important coverage. Knowing what these types of insurance cover can help you decide which type of policy is best for your needs or if having both is appropriate.

Do I need both life insurance and AD&D?       

An accidental death and dismemberment (AD&D) insurance policy can help protect your family’s finances in the event of the loss of your life or limb(s). It can be an affordable way to supplement your life insurance or medical coverage if you’re seriously injured or die as a result of an accident. Keep in mind AD&D is not a substitute for life insurance, but could be a good supplemental policy. Coverage from a Term or Whole Life Insurance policy can help reduce the stress and pain your family faces after you die, and you can no longer financially contribute to the household.

AD&D versus Life Insurance

Here’s a breakdown of what each policy type covers.

The situation Life insurance AD&D

Death due to illness (e.g., stroke or heart attack), disease (e.g., cancer) or natural causes

Yes

No*

Death due to an accident or unnatural causes (e.g., traffic accidents or falls)

Yes

Yes

Death due to drug overdose or suicide (See paragraph below.)

Yes

No

Loss of a limb, sight, hearing or speech (See paragraph below.)

No

Yes

Loss of use of limb(s) due to partial or permanent paralysis (See paragraph below.)

No

Yes

*Under a basic AD&D policy, the insurer does not cover death due to an illness like stroke or heart attack, or a disease such as cancer. However, with the purchase of an appropriate rider, the insurer may cover death related to these kinds of illness or disease.

 

Keep in mind life insurance policies pay benefits for suicide only after the policy has been in force for at least two years. Check your policy for exact details. AD&D will only pay a portion of the face value for the loss of use of a limb, sight, hearing, speech or paralysis. The extent of injuries covered are particular to and defined by the insurer, and policy.

LGFCU, through TrueStage, can help with affordable life insurance coverage and no-cost AD&D coverage. Contact us at 800.814.2914 for more information about securing your family’s financial future. 

The advice provided is for informational purposes only. Contact your insurance agent for additional guidance. TruStage® AD&D Insurance is offered by TruStage Insurance Agency LLC and underwritten by CMFG Life Insurance Company. The insurance offered is not a deposit and is not federally insured or guaranteed by your Credit Union. For information on other insurance products available to you, contact your local branch. 

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