Accidental Death and Dismemberment (AD&D) insurance policies provide benefits in the event of loss due to an accident. These policies should not be confused with life, disability, or medical insurance policies. They provide very narrowly defined benefits.
A typical AD&D policy will pay a death benefit or benefit for loss of eyesight, a hand or foot (or a combination thereof), due to an “accident.” Such defined losses must occur within a specific time-frame following the accident event, usually between 90 days and one year after the accident causing the loss. Proceeds for the loss of life are payable to a named beneficiary. Proceeds for other losses are paid to the insured individual, if living, otherwise to the beneficiary. AD&D insurance proceeds are payable in addition to any other insurance including a separately obtained life insurance policy. More often than not, AD&D policies are obtained through an individual’s employment and could be covered by federal ERISA laws.
Accidental Death and Dismemberment claims can be denied by the insurance company for a wide variety of reasons. AD&D policies typically exclude coverage for losses which occur due to suicide, surgical treatment for disease or medical infirmity, infection, acts of war, or during travel either on aircraft or motor vehicles. Some policies provide coverage for “loss of use” or paralysis which typically means the total and irrecoverable loss of function of an arm, hand, or leg. Other policies only provide coverage if the body is actually severed.
If you are in a serious accident, you could possibly lose your income. This is especially true if you suffer a loss of a body part. A disability income replacement policy will help ease your financial woes. An AD&D policy provides extra protection. Hopefully, you have both types of coverage. If you find yourself in such a situation, you should determine if you are insured under a AD&D policy which may provide additional financial protection for a covered loss. Feel free to contact the Law Office of Shawn E. McDermott, LLC if you have any questions concerning such coverage or if your accidental death and dismemberment insurance claim has been denied. Our insurance attorneys can assist with your claim denial whether in you find yourself in Colorado or any other state. Please click here to be connected to our contacts page.