An accident is a sudden tragedy that puts extra financial strain on an employee or family. Accidental Death and Dismemberment insurance is a low-cost solution to reduce the family's adjustment during the immediate period following an accidental death. The same policy provides cash for an employee who has had to make adjustment due to a handicap caused by an accident.
- While benefit amounts can vary from plan to plan, typically the principal sum is payable for the loss of life, both hands or feet, or sight.
- Fractions of the principal sum are payable for other losses (for example, 3/4 for the loss of a limb, 1/2 for speech or hearing, and 1/4 for the fingers of one hand).
- Benefits are paid directly to the plan member, with the exception of loss of life. In the event of death, benefits are paid to the beneficiary designated by the employee, if living, otherwise to the plan member's estate.