Accidental Death and Dismemberment 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. But it can help your loved ones to be financially secure if an accident does happen while overseas (see: overseas insurance).
There is no way to predict if an accident will occur and AD&D insurance coverage is an important 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 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 increases for multiple losses.
There are three types of plans and they can be purchased for single or multi-trip insurance policies. Let’s review the different options:
The most comprehensive form of AD&D coverage, the 24-hour plan offers coverage from the time you leave on your scheduled trip until the time you return home. The 24-hour coverage allows for 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 specific to 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 aircraft. Flight Accident AD&D benefits will not apply if injury or death occurs during the non-flight portion of your trip.
This type of policy is geared to general travel. You will have coverage for incidents that might occur while you are away, whether it be traveling on an airplane, train or cruise ship.
What is covered?
Typically, AD&D coverage provides benefits if the insured person has an injury the results in:
- 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 so you know what they cover.
- You choose between the basic essentials and more extensive coverage.
- Meets Schengen visa insurance requirements.
- 24/7 worldwide travel and emergency medical assistance.
What is not covered by AD&D insurance?
When researching your travel insurance options, be sure to ask about AD&D coverage. It is a part of 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 purchasing to include AD&D.
Above all, by purchasing AD&D insurance you can rest assured that your family will be taken care of should an unfortunate accident did occur.