Accidental Death and Dismemberment, or AD&D, coverage pays an indemnity (a lump sum payment) up to the amount defined in the policy for the loss of life or functioning limbs to you or your beneficiary(ies).
Death benefits are paid at 100% of the policy limit; dismemberment benefits are paid at a percentage for one loss and increase for multiple losses up to 100% of the policy limit. Loss of life benefits are paid in addition to any benefits paid by other life insurance plans.
Travel insurance has two different types of AD&D coverage, each of which covers accidents that occur during a covered trip or during the flight portion of a covered trip:
Comprehensive AD&D, that is 24-hour AD&D, provides coverage for unfortunate travel accidents that can mean permanent disability or death; flight accident AD&D is focuses its protection on accidents that are directly related to air travel. This means the latter won’t provide benefits if the traveler is injured or killed during the non flight portion of their trip.
Damian Tysdal is the founder of CoverTrip, and is a licensed agent for travel insurance (MA 1883287). He believes travel insurance should be easier to understand, and started the first travel insurance blog in 2006.