What benefit does an Accidental Death and Dismemberment Rider provide?

An Accidental Death and Dismemberment (AD&D) Rider provides a principal sum benefit when the insured suffers certain injuries, such as loss of limbs or eyesight, or in the event of accidental death. This rider is designed to offer additional financial protection specifically related to accidents, which are often unexpected events leading to serious injuries or death.

In the case of accidental death, the beneficiary receives the principal sum, while specified injuries may result in varying amounts of compensation based on the severity of the injury. This distinction is critical because the core purpose of the rider is to focus on accidental injuries rather than natural causes, work-related accidents that may be covered under different insurance policies, or merely returning premiums.