The Difference Between AD&D and Term Life Insurance

Whether talking about a good book, a movie, or their own lives, no one ever likes to think about the end. But there comes a point in our lives when we start to consider the one thing we love to think about: our families.

The simple truth is that your family has come to depend on you, not just physically, emotionally, and mentally, but also financially as well.

If you’ve reached the point in your life where you’re beginning to think of not just your future, but also your family’s future, then it may be time to start evaluating your insurance options for protecting them in the event of something unforeseen. Examining the differences between Accidental Death & Dismemberment (AD&D) and Term Life Insurance may be the best place to start.

Identifying Your Needs

While the two may sound similar, if not the same, they are actually completely different forms of insurance coverages.

By only enrolling in one of the two forms of coverages, you are not automatically covered in the event of your passing. Knowing the difference between AD&D and Term Life Insurance is crucial when deciding if either or both are right for you.

A Term Life insurance policy will issue your beneficiaries a payout in the event of your death. It covers you for a specific, pre-determined period of time – usually between ten and twenty years, depending on the details of your policy. After the initial term of the policy has expired, you then may have the option to renew, though the rate may increase due to age or new medical conditions that may have arisen throughout the course of your previous policy period. Additionally, depending on your carrier, you may even have the option to convert your policy into a form of permanent life insurance.

AD&D insurance, on the other hand, issues a payout in the event of a covered accident that results in anything from dismemberment or loss of sight/hearing/speech, to death. Your carrier and plan type will determine the cut off age for coverage.

Getting Covered

Ultimately, when it comes to deciding which type of coverage best fits your unique needs the choice is entirely yours, however, speaking with a licensed Benefits Counselor may help you decide which option is best for you.

To speak with one of our licensed Benefits Counselors about what AD&D or Term Life Insurance options may be available to you, please visit The FICPA sponsored CPA Insurance Marketplace to request more information.