Accidental Death and Dismemberment (AD&D) insurance is a type of insurance policy that provides coverage in the event of accidental death or dismemberment. Unlike traditional life insurance, which pays out in the event of natural or accidental death, AD&D insurance specifically covers accidental death and certain injuries resulting in dismemberment. AD&D insurance typically covers accidents such as car accidents, falls, and other unforeseen events that result in death or serious injury. The coverage amount is usually paid out as a lump sum to the beneficiary or the insured in the event of dismemberment. It's important to note that AD&D insurance does not cover deaths resulting from illness or natural causes. Additionally, the policy may include specific exclusions, so it's crucial to carefully review the terms and conditions. Some AD&D policies also offer additional benefits for specific injuries, such as loss of sight, hearing, or limbs. It's essential to thoroughly understand the terms of the policy to determine the extent of coverage and any limitations. AD&D insurance can provide an added layer of financial protection in the event of unforeseen accidents, offering peace of mind to the insured and their beneficiaries.