Accidental Death and Dismemberment Insurance Makes for Cheaper Life Insurance Rates
As before, just what constitutes a "dismemberment" may vary from company to company
, and so may the size of the death benefit. Logically, an accidental death and dismemberment policy will not pay a benefit of its full face amount for an individual who loses a thumb but is otherwise alive and unharmed. (The policy may pay out a full benefit for some non-lethal accidents, as with the loss of two limbs, however.) The insurance contract indicates what it will pay for each of the covered dismemberments.
Accidental Death and Dismemberment Insurance Makes for Cheaper Life Insurance Rates