when adding an ad d rider also known as a double indemnity rider to a life insurance policy the designated beneficiaries receive benefits from both the rider and the underlying policy if the insured dies accidentally 
benefits typically cannot exceed a certain amount as detailed in the rider as most ad d insurance payments mirror the face value of the original life insurance policy the beneficiary normally receives a benefit twice the amount of the life insurance policy s face value upon the accidental death of the insured typically accidental death covers exceptional circumstances such as exposure to the elements traffic accidents homicide falls drowning and accidents involving heavy equipment ad d insurance is supplemental life insurance and not an acceptable substitute for a full life insurance policy most ad d policies pay a percentage for the loss of a limb partial or permanent paralysis or the loss of use of specific body parts such as the loss of sight hearing or speech the types and extent of injuries covered are particular to and defined by each insurer and policy voluntary accidental death and dismemberment vad d insurance is an optional financial protection plan that provides a beneficiary with cash if the policyholder is accidentally killed or loses certain body parts vad d is also a limited form of life insurance and is generally less expensive than a full life insurance policy 3premiums are based on the amount of insurance purchased 4 vad d insurance is typically purchased by workers in occupations that place them at high risk of physical injury most policies are renewed periodically with revised terms 