how much such a policy pays depends not only on the amount of coverage purchased but also on the type of claim filed for example the policy might pay 100 if the policyholder is killed or becomes quadriplegic but only 50 for the loss of a hand or the permanent loss of hearing in one ear or sight in one eye 
common exclusionseach insurance provider includes a list of exclusions in most instances the list includes suicide death from illness or natural causes and wartime injuries other common exclusions include death resulting from the overdose of toxic substances death while under the influence of nonprescription drugs suicide certain recreational activities and the injury or death of a professional athlete during a sporting event usually if the insured s loss occurs because of a felonious act on his or her part no benefit is payable people working in high risk jobs such as public safety and the military may not qualify for ad d coverage 5accidents are the fourth leading cause of death in the united states 6advantages and disadvantages of ad d insurancefinancial assistance an accidental death impacts the surviving loved ones emotionally as well as financially as they must now deal with a sudden loss of income the death benefit from an ad d policy can add peace of mind by lessening that burden supplements lost income because the loss of income will carry forward ad d policies provide funds in addition to the death benefit offered through the traditional life insurance on the insured the death benefit amount is usually equal to or some multiple of the traditional policy s death benefit amount this extra benefit may be known as double indemnity as the death benefit usually doubles with this added feature lower premiums because coverage is limited to certain events causing accidental death or loss of limb premiums are relatively inexpensive if offered through an employer it may only cost participating employees a few dollars per month even when purchased individually the costs are considerably less than rates for term insurance offering the same face amount no medical exam most insurance companies do not require a medical exam to obtain ad d coverage particularly group ad d offered through an employer only pays for certain incidents this limited coverage can be disadvantageous to policyholders because it only pays upon certain events if death occurs outside of these limitations the ad d policy does not pay premiums paid are forfeited and remain with the insurer for example if someone dies as the result of a terrorist attack no benefit is paid because that is considered a wartime act insurers have the ability to make exceptions to this as was done for victims of the 9 11 terrorist attacks in the united states low likelihood of payout the leading cause of death in the united states is heart related issues while accidents rank fourth 7 therefore it is more likely that someone will die from natural causes than from an accident especially older adults and those not engaged in risky work group coverage lost when you change jobs if coverage is group or employer sponsored it may not be portable if the insured leaves the group or employer often coverage ends upon the termination of the insured s affiliation with the sponsor leaving them unprotected until new coverage is issued false sense of security having ad d may give policyholders a false sense of security if they include the face amount in their cumulative life insurance totals during planning because ad d only pays upon certain events it should not be used to determine whether your life insurance portfolio is sufficient traditional life insurance should be adequate to provide necessary financial support to the beneficiaries ad d supplements that payout in the unlikely event that death occurs from an accident still it adds an extra benefit with the sudden and unexpected departure of the insured 