What does an Accidental Death and Dismemberment policy provide?

An Accidental Death and Dismemberment (AD&D) policy primarily provides a lump sum benefit to the insured or their beneficiaries in the event of an accidental death or the loss of specific body parts due to an accident. This benefit is contingent upon the nature of the accident and the resulting injuries, which are clearly outlined in the policy.

For instance, if an insured person dies as a result of an accident, the policy will pay a predetermined amount to the beneficiaries. Similarly, in cases where a covered body part is lost (such as a hand, foot, or eye), the policy specifies the amounts for each type of loss. This type of insurance is designed specifically to address the financial impact of these extraordinary events, which can provide financial support during a challenging time.

The other options indicate types of coverage or benefits that an AD&D policy does not cover; for example, monthly income after an accident or weekly payments for rehabilitation pertain to other types of insurance products, like disability income or rehabilitation coverage. Additionally, while AD&D policies cover specific accidental injuries, they do not extend coverage to all accidental injuries, as they are limited to those explicitly mentioned in the policy terms.