There are two kinds of accident policies, including Accidental Death and Dismemberment Insurance (AD&D)
and Accident Health Insurance. They are often combined and sold together. The benefits vary from state to
state due to local insurance regulations.
An accidental death and dismemberment policy will pay you a lump-sum cash benefit if you are the named
beneficiary of someone who died in an accident. These policies may also pay smaller amounts if the person
did not die in an accident but lost a limb, eyesight, or suffered permanent paralysis. AD&D insurance does
not pay for any deaths related to illness, suicide, or natural causes.
Accident health insurance (also known as an accident hospital indemnity policy) may pay for medical costs
resulting from an accident that are not covered by your regular health insurance. Some of these policies may
also pay for extended homecare services, and travel and lodging expenses for family members.