AD&D Insurance vs. Life Insurance: What’s the Difference?

AD&D insurance vs. life insurance: what’s the difference? If you’ve been wondering what the difference is between AD&D insurance and life insurance, this article is for you.

AD&D Insurance vs. Life Insurance: What's the Difference?

What is AD&D insurance?

AD&D insurance is also known as accidental death and dismemberment insurance. This is a type of insurance quote that offers financial coverage for accidents that result in severe injuries or death. However, this type of insurance does not offer coverage for illnesses or natural causes. Instead, it works better for accidents in the workplace, during recreational activities, and at home. With this type of policy, you do not have to worry about financial support if a serious accident or event happens or takes place.

What Does AD&D Insurance Cover?

Accidental death and dismemberment (AD&D) insurance covers various causes of death. For a better understanding, here is what this type of insurance covers:

  • Fire.
  • Murder.
  • Loss of hearing.
  • Loss of eyesight.
  • Poisoning.
  • Crushed by fallen objects.
  • Accidents on public transport like airplanes, buses, taxis, trains, ferries, or other forms of public transportation.
  • Lightning.
  • Vehicular accidents.
  • Drowning.
  • Work-related machinery accidents.
  • Loss of limbs, ear, finger, or eye.
  • Choking and suffocation.

What Does It Not Cover?

These are the exclusions involved with this type of policy. But I need you to remember that these exclusions vary among insurers. So, you must read your policy carefully to find out what you will not be covered for:

  • Drug overdose.
  • Military or war deaths or injuries.
  • Death from illnesses.
  • Death during a criminal activity.
  • Bacterial infection.
  • Skydiving, scuba diving, car racing, and other high-risk activities.
  • Suicide.
  • Driving under the influence.
  • Death during surgery.

These are the situations or events for which you will not be receiving coverage from your insurer or insurance company if anything happens.

Who Needs a Policy?

If you are a high-risk professional, I suggest you consider an accidental dismemberment and death insurance policy. So, if there is an accident during work that will lead to death, blindness, loss of limb, or paralysis, you should get this type of insurance policy to receive coverage and protection against such events.

What is Life Insurance?

Life insurance is a type of policy that exists between you and an insurer or insurance company. But in exchange for coverage, you will have to pay premiums monthly. If you leave the death and have this type of policy, your beneficiaries will receive death benefits. What’s more, life insurance covers accidental and natural deaths. In the meantime, there are two types of life insurance.

We have temporary life and permanent life insurance. As for the temporary life insurance, this covers you for a particular period. While permanent life insurance offers coverage until the end of the policyholder’s life, purchasing a permanent life insurance policy is more expensive than temporary life insurance.

What Does Life Insurance Cover?

If you have a life insurance policy, there is some basic coverage that you will enjoy. However, keep in mind that the coverage you get on a policy depends on the insurer as well as other factors. Here are some of the things that your life insurance covers:

  • Murder.
  • Death is caused by natural causes.
  • Suicide.
  • Accidents.
  • Injuries and illnesses.

Nevertheless, you can add other coverage to your policy if your insurance company allows it to extend your coverage.

What Does It Not Cover?

It is without a doubt that life insurance covers deaths caused by various reasons and causes. However, not all death causes are covered by this type of insurance policy. Here are some of the deaths and events that your life insurance will not cover:

  • Criminal activity.
  • Dangerous sports.
  • Death abroad.
  • Death is caused by dangerous drugs and heavy drinking.
  • Suicide.

Who Needs a Policy?

Who needs a life insurance policy? If you would like to find out if you fall into this category, this section has more details.

  • Caregivers.
  • Singles without children.
  • If you have debts,.
  • Business owners.
  • If your family will experience difficulty covering your funeral.
  • Retirees.
  • Stay-at-home parents.
  • Adults with private student loans.
  • If you are purchasing a new home.
  • If your partner survives on your income.

AD&D Insurance vs. Life Insurance: What’s the Difference?

Here is a table illustrating the difference between accident, death, and dismemberment insurance and life insurance and how the coverage makes them different from each other.

CoverageAD&D Insurance PolicyLife Insurance Policy
Death from natural causesNoYes
Death by murderYesYes
Needs medical exams before approvalNoSometimes
High premiumsNoSometimes
Death from accidentsYesYes
Denials due to high-risk occupationNoYes
Car accidentsYesYes
Death by suicideNoYes, after two waiting periods.
Average cost$12.95 per month.$31.92 per month
Loss of hearing from an accident, coma, loss of sight, and paralysisYesNo
Death due to the influence of alcohol or drugsNoYes

Now that you understand what AD&D and life insurance cover, you should have no problem choosing the policy that suits you.