What does an Accidental Death and Dismemberment Rider offer upon accidental death?

An Accidental Death and Dismemberment (AD&D) Rider provides additional financial protection in the event of accidental death or severe injuries leading to dismemberment, such as the loss of a limb or sight. When accidental death occurs, the rider typically pays out a benefit that is a multiple of the face amount of the base life insurance policy. This means that the payout for accidental death can be significantly higher than the regular death benefit, offering increased financial support to the beneficiaries.

The rationale behind this is that the purpose of the rider is to specifically address and provide additional coverage for the risks associated with accidental death, which is deemed to have a different risk profile compared to death due to natural causes. By linking the benefit to a multiple of the face amount, it creates a more substantial safeguard against the financial repercussions of such unexpected events, thereby fulfilling the rider’s intent to offer heightened reassurance for policyholders and their families.

This characteristic clearly distinguishes the AD&D rider from other options that do not typically align with the core purpose of offering enhanced financial benefits specifically tied to accidental circumstances.