Unlike
traditional life insurance that provides a death benefit only in the event of the
death of the life insurance policyholder, accidental death and dismemberment insurance
provides additional coverage in the event the policyholder becomes permanently
injured in a number of specific ways.
This type of policy traditionally pays a
certain benefit for the loss of limbs, with a specific dollar figure assigned
to each type of lost limb.
Many companies provide this type of coverage to their
workers as a fringe benefit, and additional coverage can be purchased through
many life insurance companies.
Accidental death life insurance pays out a death benefit if the insured person dies as a result of an accident covered by the policy.