AD&D stands for accidental death and dismemberment. This insurance coverage can be added as a rider, an attachment to an insurance policy that alters a policy's terms or coverage, to a primary life insurance policy. AD&D can also be purchased as a standalone policy with clearly defined payout tables.
AD&D pays a benefit in the event of the loss of life or limb(s) in an accident. In the case of an AD&D rider, the benefit may provide two times, or in some cases three times, the face amount of the policy for specified types of accidents. According to the New York State Insurance Department, the accidental death must occur before a specified age, such as age 65, and deaths caused by illness are excluded.
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