The Accidental Death & Dismemberment (AD&D) benefit provides protection in the event that a plan member incurs a loss, or loss of use of: life, limb, sight, hearing, and/or speech due to an accidental injury. Accidental Death & Dismemberment is also referred to as double indemnity insurance as it doubles the benefit for plan members who die as a result of an accident.
Most Accidental Death & Dismemberment policies cover both "loss" and "loss of use". Loss is generally defined as an actual severance whereas a loss of use must generally be total and irrecoverable. Some policies only cover a loss and are therefore far less comprehensive in their coverage.
Coverage can be provided on a 24-hour or non-occupational basis. Coverage on a 24-hour basis is more common and covers accidents that occur both on and off the job. Non-occupational AD&D does not provide coverage for death or injuries resulting from an accident while the plan member is at work. For plan members employed in hazardous occupations and therefore covered by Workers' Compensation benefits, AD&D is often implemented on a non-occupational basis.
Accidental Death & Dismemberment coverage is generally based on a flat amount of coverage (e.g. $25,000, $50,000, $100,000) or as a multiple of salary (e.g. 1 x salary, 2 x salary). Below is a typical AD&D schedule where the principle sum equals the amount of coverage (e.g. $25,000 or 1 x salary):
| For Loss of: | Benefit Amount: |
|---|---|
| Life | The principle sum |
| Both hands or both feet | The principle sum |
| Sight of both eyes | The principle sum |
| One hand or foot and sight of one eye | The principle sum |
| One leg or one arm | Three-quarters of the principle sum |
| One hand or one foot | Two-thirds of the principle sum |
| Speech or hearing in both ears | Two-thirds of the principle sum |
| Thumb and index finger | One-third of the principle sum |
| Four fingers of the same hand | One-third of the principle sum |
| Hearing in one ear | One-quarter of the principle sum |
| All toes on one foot | One-eighth of the principle sum |
| Loss of Use of: | Benefit Amount: |
| Both arms and both legs (quadriplegia) | The principle sum |
| Both legs (paraplegia) | The principle sum |
| One arm & leg on the same side of the body (hemiplegia) | The principle sum |
| Both hands or both arms | The principle sum |
| One arm or leg | Three-quarters of the principle sum |
| One hand or one foot | Two-thirds of the principle sum |