What does "accidental death and dismemberment" insurance cover?

Accidental death and dismemberment (AD&D) insurance specifically provides benefits in the event of accidental death or serious injuries that result in dismemberment. This type of insurance typically covers situations where individuals suffer severe physical injuries, such as the loss of a limb or other body part, due to an accident. Additionally, if the insured individual dies as a result of an accident, the policy pays out a death benefit.

This coverage is separate from other types of insurance, as it focuses exclusively on unforeseen accidents rather than injuries related to illness, repetitive strain, or natural causes. It does not include benefits for medical costs associated with the injuries or any income loss due to permanent disability, as these are covered under different types of insurance products. The focus of AD&D insurance is strictly on the consequences of accidental incidents, making the selected answer the most accurate portrayal of its coverage.