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

Shawn Plummer

CEO, The Annuity Expert

When it comes to life insurance vs. AD&D, there are some key differences that you need to be aware of. AD&D, or accidental death and dismemberment insurance, is a type of policy that pays out a benefit if you die as the result of an accident. It does not cover natural causes of death, such as heart disease or cancer. Life insurance, on the other hand, covers both accidental and natural deaths. It also provides a payout if you are diagnosed with a terminal illness and have less than 12 months to live. So, which type of policy is right for you? Let’s take a closer look at the pros and cons of each one!

Life insurance vs. accidental death & dismemberment (AD&D) insurance

When you are looking at life insurance and AD&D, it is important to understand the basics of each one.

Life insurance

Life insurance gives money to people you love when you die. You pay premiums every month to keep the policy active. If something happens to you, the people you named as beneficiaries get the death benefit.

The two most common types of life insurance are:

  • Term life insurance is a type of insurance that expires after a number of years.
  • Whole life insuranceis a type of permanent life insurance. It remains active as long as you keep paying the premiums, and it also has a savings-style cash value account.

A term life insurance policy is a good option for most people because it is affordable and easy to understand.

Accidental death and dismemberment (AD&D) insurance

AD&D policies cover accidental death, but not death from natural causes like old age or illness. AD&D insurance policies also pay out a part of the benefit if you are injured or lose a limb in an accident.

Supplemental life insurance vs. AD&D insurance

Some life insurance policies are accident and death insurance (AD&D). This means that the policy will pay out if you die from an accident, not just from natural causes.

You might want to buy supplemental life insurance to make sure you are fully protected. Buying a private life insurance policy is a good idea because any policy you get from your employer does not stay with you when you leave the company.

Do you need AD&D insurance if you have life insurance?

If you have life insurance, you do not need AD&D insurance. AD&D insurance is a good way to add extra protection in case of an unexpected injury, but it is more expensive than life insurance.

Disability insurance is the most comprehensive way to protect your income in case you get injured, but it can be expensive. Some people may not be able to afford private disability insurance, but there are other options available.

If you are worried about accidents while traveling, travel health insurance will be the best option for you.

Accidental death and dismemberment riders

If you want both life insurance and AD&D insurance, you can buy a rider. This will let you have both types of insurance. If you die in an accident, your AD&D rider will pay out more than if you died from natural causes. If you die from natural causes, your policy will just pay out the base amount.


Life Insurance Vs. Ad&Amp;D

If you can only afford one type of coverage, life insurance is the best option because AD&D insurance does not always payout if you die from natural causes, sickness, disease, drug overdose, or suicide. If you want the most protection possible, it is a better idea to add an AD&D rider to your life insurance policy than to have just AD&D insurance.

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What Is The Difference Between Accidental Death Vs Life Insurance?

Accidental death insurance covers death resulting from accidental causes, while life insurance covers death from any cause.

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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