Accidental Death and Dismemberment Travel Insurance
Travel is fun and engaging. Wherever you visit, exciting experiences await, and so do many new adventures; however, along with new adventures, there can also be risks. Accidental Death and Dismemberment (AD&D) insurance is something nobody wants to think about. However, it can help your loved ones to be financially secure if an accident were to happen while overseas.
There is no way to predict if an accident will occur, and AD&D insurance coverage is an essential part of protecting your family if you were to become permanently disabled or die prematurely while traveling.
AD&D coverage pays an indemnity (a lump sum payment) in the amount your policy specifies. That amount is paid directly to your beneficiaries or to your estate if there are no designated beneficiaries. These benefits are in addition to any other benefits or international life insurance plans you might have.
Typically, the coverage for death benefits is 100 percent of the policy limit, while dismemberment benefits are at a percentage per loss and increase for multiple losses.
Understanding What “Accidental” Means
Accidental death and dismemberment insurance offers compensation to a designated beneficiary in the event of the policyholder’s accidental death. It also provides compensation to the policyholder in the event of a limb dismemberment or other included injury. The policy is meant to cover actual accidents. As such, it doesn’t pay out if the policyholder is in some way responsible for the circumstances, such as driving while intoxicated.
It’s essential to note that AD&D insurance differs from international life insurance. AD&D policies exclude all deaths that result from illness, including both long-term ailments and sudden events like a heart attack. It’s genuinely just for accidents—situations that are utterly beyond control and completely accidental circumstances.
AD&D’s narrow, restricted focus has an upside. Travel insurance policies are usually very affordable, as catastrophic accidents are (thankfully) infrequent. As a result, AD&D insurance allows travelers to invest in comfort and peace of mind for a very reasonable price.
There are three types of plans available for single-trip or annual travel insurance policies. Let’s review the different options:
24-hour AD&D
The most comprehensive form of AD&D coverage, the 24-hour plan, provides coverage from the time you leave on your scheduled trip until you return home. This allows you to be covered at all times for travel accidents that lead to permanent disability or death.
Flight Accident AD&D
This type of coverage is specifically designed for air travel. Coverage is provided if death or injury is sustained while boarding, riding on, and exiting an aircraft. Coverage may also include being struck by or run down by an airplane. Flight Accident AD&D benefits will not apply if injury or death occurs during the non-flight portion of your trip.
Common Carrier
This type of policy is geared toward general travel. It covers incidents that may occur while you are away, whether on an airplane, a train, or a cruise ship.
What Is Covered?
Typically, AD&D coverage provides benefits if the insured person has an injury that results in:
- Death
- Irrecoverable loss of vision in one or both eyes
- Permanent loss of one or both hands or feet
To qualify for benefits, the loss must be a direct result of an accident and occur within a certain number of days from the incident – generally 180 to 365 days. Review plans carefully before purchase to ensure you understand what they cover.
Comfort and Support During Tragic Times
That comfort has a long reach. In the tragic event of a policyholder’s accidental death, their beneficiary (usually a spouse, child, or other loved one) will receive a generous insurance payout. It can serve as a helpful supplement to standard life insurance in the event of a sudden and unexpected death. The AD&D insurance payout can be used to provide additional support during times of extreme need. For instance, it could help cover the cost of counseling or the expenses associated with reuniting family members for extra support.
Discussing the Other “D”: Dismemberment
While “death” is a fairly straightforward, albeit uncomfortable term, “dismemberment” has a broader meaning. It refers to what happens when someone loses a limb or appendage due to an accident. It could be as big as an arm or a leg or as small as a toe or a finger. And it also usually includes compensation for complete sensory loss (like the loss of vision and hearing, even when there is no dismemberment).
While it’s challenging to quantify the value of a particular body part to a person’s life, AD&D policies tend to operate on a sliding scale. A typical example is that a policyholder receives 50% of the policy’s value if they lose a whole limb. For a less severe injury, such as the loss of a toe, a 25% reduction in policy value is common.
Regardless of the injury or loss, there’s no denying that the consequences are catastrophic. The aftermath of such a horrific accident means tremendous mental and physical adjustments. That could involve everything from prosthetic limb fittings to retraining to perform a new job. The financial support an AD&D policy provides is invaluable.
A Particular Risk for Global Travelers
Accidents can occur at any time and without warning. But for travelers, there’s one particular kind of accident that is sadly very predictable. Road and traffic accidents are a leading cause of accidental death and dismemberment (AD&D) claims for travelers. In Canada, there are, on average, 6 road traffic fatalities per 100,000 people (based on 2012 statistics). In Jamaica, the rate is 11.5 per 100,000; in Zambia, it’s just under 25 per 100,000; and in Thailand, it’s 36.2 per 100,000. As a general rule, developing countries—especially those with vacation hotspots—have road fatality rates that are significantly higher than the global average. A gorgeous beach makes it easy to forget just how varied road safety standards are around the world.
Accidental death and dismemberment insurance can be awkward to talk about, even a bit frightening, but travelers should take heart. Actual accidents are rare, and getting coverage is affordable and reassuring.
What Is Not Covered?
AD&D insurance does not cover the cost of emergency medical evacuation or the repatriation of remains. Coverage for those services would fall under a separate plan, such as travel medical insurance.
When researching your travel insurance options, be sure to inquire about accidental death and dismemberment (AD&D) coverage. It is included in some travel medical insurance and some travel insurance packages. Sometimes, it can be purchased as a standalone plan, but there is likely an opportunity to upgrade the plan you are buying to include AD&D.
Above all, by purchasing AD&D insurance, you can rest assured that your family will be cared for should an unfortunate accident occur.
Recommended Travel Insurance with AD&D Benefits
Two plans we suggest are the WorldTrips Atlas Travel and the IMG Patriot Platinum plans.
The Patriot Platinum plan offers a $50,000 principal sum with no deductible, provided the death occurs within 90 days of the accident.
Patriot Platinum Travel Insurance
- Maximum limits up to $8,000,000
- IMG pays 100% of medical expenses in-network
- Evacuation due to Natural Disasters & Political Unrest
The Atlas Travel plan offers a $250,000 maximum benefit (excluding loss due to Common Carrier Accident) to any one family or group. It is not subject to a deductible or overall maximum limit.
Atlas Travel Insurance
- Emergency medical, evacuation, and repatriation benefits
- Choose between basic or more extensive coverage
- Meets Schengen visa insurance requirements
International Citizens Insurance has an experienced team of authors, including expatriates and world travelers, providing curated guidance for our clients.
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