What is accidental death and dismemberment (ADandD) insurance?

Accidental death and dismemberment (AD&D) insurance is specifically designed to provide financial protection in the event that an individual suffers a serious injury or death as a direct result of an accident. This type of insurance pays benefits not only for accidental death but also for severe injuries that result in the loss of limbs, sight, hearing, or other serious consequences. It focuses on unexpected events rather than illnesses or natural causes, differentiating it from standard life insurance and health policies.

Understanding this, the other options do not accurately define AD&D insurance. For instance, a policy that pays benefits for illness-related deaths refers to standard life insurance which covers death due to any cause, including health-related conditions. The option that describes insurance covering only medical expenses from accidents misses the core nature of AD&D, which involves compensation for specific incidents rather than just reimbursing medical costs. Lastly, stating it provides life insurance for accidental deaths only neglects the coverage for severe injuries, which is a crucial component of AD&D insurance. Thus, the emphasis on both death and severe injuries due to accidents accurately captures the essence of AD&D coverage.