Life insurance differs from Accidental death insurance in that Life Insurance pays for death of the insured person by any reason (except suicide in the first two years in most states), whereas Accidental death insurance only pays out a death benefit for death of the insured resulting from accidental reasons.

AD&D stands for Accidental Death and Dismemberment. If the death of the insured person is due to falling down stairs, a car accident, or any other type of accident, the insurance policy will pay the death benefit out to the beneficiary of the policy.

And some accidental death and dismemberment insurance policies also pay out a benefit for the loss of an extremity, such as, the loss of an arm or leg.

But if death of the insured was due to illness (even an accident caused by illness, such as driving into another car while suffering a heart attack), the insurance policy will not pay out any death benefit.

Life insurance covers both types of death, death by natural or accidental causes.