According to the Centre for Disease Control, accidental death is the third cause of death after heart disease and cancer in the US. Although the statistics are not similar in Canada, most Canadian truckers drive in the US, so an ad & d policy is required.
What is Accidental Death and Dismemberment (AD & D) Insurance?
Accidental death insurance is the coverage of death because of an accident and dismemberment is the coverage for loss of limbs because of an accident.
Most AD&D policies pay about 50% of the insured amount for loss of one limb and 50% to 100% if insured lost limbs in a pair.
If you are buying a plan in Canada, most carriers cover $50,000 to $300,000. However, you can add additional top-up coverage to meet your needs.
What is covered in ad&d policy?
The ad&d policy covers death because of an accident, not because of illness or natural death.
It all depends upon but you are buying. Some policies in Canada offer 24 hour coverage, meaning they cover you at work, travel and home. In fact, 24 hour coverage policies are comparatively better for all occupations, work environments and geographics.
Additional benefits of ad&d.
Accidental Death and Dismemberment (AD&D) may be added as a rider to a health or life insurance policy. The AD&D is also available in a package with travel and disability plans.
Accidental medical treatment benefit, child plan, out of province coverage, and counselling and return to work are the additional benefits available in these plans.
Read the terms carefully before purchasing Accidental Death and Dismemberment. It is life insurance, but covers the loss of life because of an accident, not illness or natural death.
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How do AD & D Works?
When a person dies because of an accident, the insurance company usually pays the full amount, whereas when someone becomes disabled because of an accident, the company usually pays according to the loss. Always read the policy wording for complete details.
If you have both Life Insurance and Accidental Death & Dismemberment coverage, your beneficiary will get both payouts.
What does it not cover under an accidental death and dismemberment plan?
The plan has some common exclusions, almost similar to life insurance plans.
They do not pay for
– Death caused by illness, mental disorders.
– Drug overdose.
– Death or injury because of driving under the influence of alcohol.
– Any incidents in the war or restricted zone.
– Self-inflicted injuries, or involvement in criminal activities.
– Death or injury while participating in dangerous sports.
– Injury occurred prior to the coverage.
Pros cons of Accidental Death and Dismemberment insurance
Pros
– It is cheaper than the life insurance, because the chances of payout are relatively low.
– Mostly, there are no medical requirements.
– Guaranteed issue plans are available.
Cons
– Benefits are available only for accidents.
– Sometimes, it is not available for all ages.
– You might lose your coverage if you leave the job.
Accidental Death and Dismemberment v/s Life Insurance
Although it is a kind of life insurance, it still cannot be used as a life insurance or term life insurance because of its limitations, like they limit coverage to accidental fatality, not with illness or disease.
Accidental death and dismemberment are cheaper than life insurance.
Coverage is wider in life insurance or term life insurance because it covers fatality of any cause.
When we compare ad&d and life insurance, the downside of life insurance is it does not cover loss of limbs because of an accident.
Is Accidental Death and Dismemberment worth it?
If you have enough life insurance, you do not need AD & D. If you want extra coverage because your work is prone to accidents, then having an AD & D with life insurance is a better choice. In the ultimate statement, we can say accidental death insurance is worth it if your job needs it.
Some workplaces offer it for free, take it.
Most truck drivers buy AD&D as a package which includes emergency medical coverage, disability insurance and Accidental death. If you are a truck driver, or your job is prone to accidents, contact us today for adequate coverage.
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