What is accidental death and dismemberment (ADandD) insurance?

Accidental death and dismemberment (AD&D) insurance specifically provides benefits for fatalities or severe injuries that result from accidents. This type of policy traditionally pays out a lump sum if the insured dies in an accident or loses limbs or other body parts due to an accident. It focuses solely on incidents that are unintentional and excludes benefits related to natural causes of death or various health issues.

The context of this insurance is critical; it serves as a financial safety net intended to support individuals or families who might face devastating losses due to unintended circumstances. By emphasizing accidental events, AD&D insurance fulfills a unique role that regular life insurance does not, as the latter generally covers death from any cause without the stipulation of how the death occurred.

The other options refer to concepts that do not align with the purpose of AD&D insurance; one addresses coverage for natural death, another focuses on injuries that are not claimable under health insurance, and the last mentions life insurance characteristics not pertaining to accidental death and dismemberment policies.