What does accidental death and dismemberment insurance provide?

Accidental death and dismemberment (AD&D) insurance is designed to provide specific benefits in the event of accidental death or certain types of severe injury. This type of insurance pays out a predetermined sum to the insured’s beneficiaries if the insured dies as a result of an accident. Additionally, it offers benefits for serious injuries that lead to dismemberment, such as the loss of a limb or eyesight.

The key element here is that AD&D insurance is focused on accidents, which differentiates it from other types of insurance that cover a broader range of issues, including injuries from various causes, not just accidents. This specificity ensures that the insured or their beneficiaries receive financial support during particularly tragic and severe circumstances stemming from unintended incidents. Therefore, the correct answer encapsulates the nature of the coverage provided by AD&D insurance.