Accidental coverage, also known as accidental death and dismemberment (AD&D) insurance, is a type of insurance policy that provides benefits in the event of accidental death, dismemberment, or injury. Unlike traditional life insurance, which pays benefits for death resulting from any cause, accidental coverage specifically covers accidents.

Here’s how it typically works:

Accidental Death Benefit: If the insured person dies as a result of an accident covered by the policy, the policy pays out a lump sum benefit to the designated beneficiary or beneficiaries.

Dismemberment Benefit: If the insured person loses a limb (such as an arm or a leg) or suffers other serious injuries specified in the policy due to an accident, the policy pays out a benefit based on the severity of the injury.

Accident Medical Expense Benefit: Some accidental coverage policies also provide reimbursement for medical expenses incurred as a result of covered accidents, such as hospitalization, surgery, or rehabilitation.

Accidental coverage is often offered as a standalone policy or as a rider to a primary life insurance policy. It can provide additional financial protection for individuals and their families in the event of unexpected accidents resulting in death or serious injury.