What does 'AD&D' stand for in insurance?

In insurance, “AD&D” stands for Accidental Death and Dismemberment.

An AD&D policy pays a benefit when an insured person dies or suffers specified severe injuries because of an accident. The death benefit generally goes to named beneficiaries, while a dismemberment or other injury benefit is paid to the insured according to the policy’s schedule. Covered injuries may include loss of a limb, sight, hearing, or speech, depending on the contract.

AD&D is not the same as ordinary life insurance. Life insurance generally covers death from many causes, including illness, whereas AD&D focuses on accidental death and narrowly defined accidental injuries. It is also not the same as disability insurance, which is designed mainly to replace income when illness or injury prevents someone from working.

Policies contain exclusions and definitions that matter. Common exclusions can involve suicide, disease-related death, war, intoxication, or hazardous activities, although exact terms vary. AD&D is frequently offered as an optional workplace benefit or as a supplement to life insurance, rather than as a complete substitute for broad life coverage.