Depending on your needs, different types of insurance can help protect your family in case of injury or death. Life insurance policies, like term life, cover most causes of death, with a few exceptions. On the other hand, accidental death and dismemberment insurance (AD&D), only pays out for deaths or severe injuries caused by accident, such as the loss of a limb.
For most people, term life insurance offers better protection in most cases and costs about the same as AD&D.
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Term life insurance vs. AD&D: Coverage comparison
The main difference between term life insurance and AD&D insurance is that term life covers most causes of death, with a few exceptions, while AD&D only covers deaths and dismemberment caused by an accident — and the cost of term life is as affordable as the cost of AD&D.
Here’s a quick comparison between both types of policies.
Claim event | Term life insurance | AD&D insurance | Term life insurance with an AD&D rider |
|---|---|---|---|
Death by natural causes, sickness, or disease | Yes | No | Yes |
Death by drug overdose | Yes | No | Yes |
Death by suicide | Yes | No | Yes |
Death by accident (car crash, airplane crash) | Yes | Yes | Yes |
Death by murder | Yes | Yes | Yes |
Loss of limb, sight, hearing, or speech | No | Yes | Yes |
Does it expire? | Yes | Yes | Yes |
How much does it cost? | $31.92/month | $12.95/month | $50.66/month |
Average monthly premiums for a 35-year-old non-smoking male with a Preferred health rating buying a $500,000, 20-year term life insurance policy based on a composite of policies offered by Policygenius from Banner Life, Brighthouse Financial, Corebridge Financial, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, and Transamerica; a $500,000, 20-year term life insurance policy with an accidental death and dismemberment rider based on rates from four carriers offering that coverage through Policygenius, including Mutual of Omaha, Corebridge Financial, Prudential, and Transamerica; and a $500,000 accidental death and dismemberment policy issued by Mutual of Omaha. Referenced policies may vary by carrier. Not all policies are available in all states. Individual rates will vary as eligibility and availability will affect each customer’s rate. Rate illustration valid as of 09/01/2023.
Note that AD&D insurance has some exclusions, including injuries sustained before coverage and death while participating in riots. Each state may have its own exclusions for what AD&D insurance will cover.
Life insurance vs. AD&D: The basics
If you’re considering term life insurance or AD&D, it’s helpful to understand the fundamentals of each type of coverage.
Term life insurance
Term life insurance pays out a tax-free lump sum of money to your beneficiaries when you die. It lasts for a set period of time — usually between 10 and 30 years — and is the most affordable way to protect your loved ones financially in the event of your death. Term life is easy to understand and doesn’t come with many complex tax restrictions or regulations.
If you have dependents who require lifelong care or have complex coverage needs, you can consider whole life insurance instead. Whole life is a type of permanent life insurance that doesn’t expire and comes with a separate cash value component that grows tax-free over time. But these two features make whole life significantly more expensive than term life.
Most importantly, both types of life insurance cover most causes of death, with a few exceptions.
→ Learn more about the differences between term life and whole life insurance
Accidental death and dismemberment (AD&D) insurance
AD&D also covers death, but only if it was the result of an accident. It won’t cover, for example, death from natural causes, like old age or illness.
AD&D insurance also pays out part of the benefit in some instances of injury or accidental loss of limbs. Your policy will outline how much of the benefit you’ll receive for different types of injuries. It will also include the specific types of death covered by the policy.
Supplemental life insurance vs. AD&D insurance
If you have life insurance through your employer, the coverage provided may actually be AD&D insurance. Check your benefits paperwork or speak with a benefits administrator to confirm what causes of death are insured by your policy.
In this case, it makes sense to buy supplemental life insurance. If you want to ensure you’re fully protected, consider supplementing your group life insurance with a private life insurance policy. Any policy you get from your employer won’t stay with you when you leave the company — and it usually pays out a coverage amount much lower than what you actually need.
Do you need AD&D insurance if you have life insurance?
If you already have life insurance, you probably don’t need AD&D insurance, but it can be a good complement to your policy. An AD&D policy is a low-cost way to add some extra protection against unexpected injuries.
However, the most comprehensive income protection for injuries is a disability insurance policy. Disability insurance helps to protect your income if you’re hurt or develop an illness that impacts your ability to earn an income — and it’s more comprehensive than any AD&D policy.
The average 20-year-old today has a 13% chance of dying before retirement age, but a 25% chance of becoming disabled. [1] While getting AD&D insurance could be helpful, statistically speaking, disability insurance is a better supplement to life insurance.
Accidental death and dismemberment riders
If you want to get both life insurance and AD&D insurance, adding an AD&D rider to your life insurance policy can be your best option. Riders are policy add-ons that offer supplemental coverage under special circumstances.
An AD&D rider — also known as a double-indemnity rider — pays out an extra amount if your death is accidental. If the death is from natural causes, your policy simply pays out the base death benefit amount.
Ask an expert about life insurance companies that offer an AD&D rider. If you can only choose one kind of coverage, term life insurance is the best choice because AD&D can leave you without protection if you die from natural causes, sickness, disease, drug overdose, or suicide.
If you’re looking for the most comprehensive protection, adding an AD&D rider to your life insurance policy is a better option than AD&D insurance alone.
If you’re unsure about the right type of life insurance to protect you and your loved ones, a Policygenius agent can help. At Policygenius, our experts are licensed in all 50 states and can walk you through the entire life insurance buying process while offering transparent, unbiased advice.
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Frequently asked questions
What's the difference between life insurance and AD&D insurance?
Life insurance pays a tax-free lump sum of money to your beneficiaries if you die. AD&D pays out to your beneficiaries only if you die or are injured in a qualifying accident.
Do you need both life insurance and AD&D insurance?
Most people only need life insurance, which covers more causes of death than AD&D and is similarly affordable.
Is AD&D insurance worth buying?
Most people don’t need AD&D as a standalone policy. If you’d like some coverage for accidental injuries, an AD&D rider or standalone disability policy are better choices.
Who needs AD&D insurance?
If you have a dangerous job or hobby, it could be a good idea to get AD&D insurance. But getting this coverage through a life insurance rider — a life insurance policy add-on — rather than an individual AD&D policy is usually more cost-effective.
