Term Life Insurance With Accidental Death And Dismemberment Rider

Adding an accidental death and dismemberment rider to a term
life policy is an ideal way for those who need extra protection
to get combined and comprehensive coverage.

Accidental death and dismemberment riders are also known as "A
D & D Riders" as well as "Multiple Indemnities." Multiple
indemnities mean that an insurance company will pay a multiple
of the policy's face value. This is the amount that the policy
would pay to the beneficiary in the event of the death of the
insured person.

One common example of indemnities is double indemnities. This
pays an equal amount to the face value of the policy so if the
insured person dies in an accident, the beneficiary receives
the policy face value and the A D & D Rider face value, which
is twice as much as the original amount.

Additional Occurrences Covered by an A D & D Rider

Depending on the rider coverage you choose to add to your term
life insurance policy, A D & D Riders may also cover loss of
sight or the loss of one or more limbs. Of course, you would
have to double check the provisions of your policy as each
carrier stipulates specific designated time frames when payment
can be received from the date that your accident occurred. For
example, imagine an insured person was in a work accident where
a crate fell on the insured person's legs, damaging the limbs
enough so that their legs needed to be amputated a few weeks
after the accident occurred. Usually the coverage period would
depend on the state in which that the policy is drawn, however,
a 90 day waiting period after the limbs are amputated is common
for this type of rider.

The most important thing to keep in mind is that A D & D Riders
do NOT cover death by any form of illegal or crime related
activities. This type of rider also does not cover death by
suicide or death by a malfunction of the body. An example of
"malfunction of the body" would be someone that suffered a
stroke or heart attack while driving. If the heart attack or
stroke occurred before the accident and the accident was the
result of that bodily malfunction, death as a result of the
accident would not be covered. Accidental death means that an
unforeseen circumstance caused death that is unrelated to the
body. The death had to have been unexpected. This is where the
term life insurance policy becomes important. While the insured
would not benefit from the rider, they would most certainly
benefit from the term life insurance policy.

Aside from accidental death, A D & D riders also cover
dismemberment. In the case of the accidental loss of one arm or
one leg only one half of the death benefit would be paid to the
insured. In the event that the insured person suffered the loss
of two or more limbs (combination of arms and legs), then that
would result in the entire face value (death benefit) being
paid to the insured. In this event, the A D & D Rider would be
terminated or waived because the entire face value of the death
benefit/term life insurance policy would have already been paid
out. Most A D & D Riders also include the sudden loss of
vision. The same principles apply. If one eye is lost only one
half of the benefit is paid out. If both eyes are lost then the
insured will receive the whole face value of the death benefit.

A D & D Riders are important to consider adding to term life
insurance policies especially if you use your body to earn your
livelihood. Make sure to get a term life insurance with rider
quote from a few different carriers to ensure the best rate.

About The Author: Sharon Taylor writes informative articles for
http://www.equote.com eQUOTE Life Insurance, a premier Internet
resource for term life insurance, no-obligation quotes, and
other helpful resource information.

Please use the HTML version of this article at:
http://www.isnare.com/html.php?aid=160401