Accidental Death and Dismemberment

Accidental death and dismemberment is not intended to supplement or replace group life insurance.

Accidental death and dismemberment provides a lump sum benefit if death occurs as a result of an accident. It also provides payments for injuries as sustained or loss of use of specified body parts or faculties as a result of an accident. Coverage is typically provided on a 24-hour basis for accidents that occur both on and off the job. Typically, a benefit is paid within 365 days following the date of the accident.

Employees covered for group life insurance are also normally covered for accidental death and dismemberment with the principal sum mirroring that of the life insurance benefit.

Accidental death and dismemberment

Benefit Structure:

Earnings based:

  • 1 X annual earnings
  • 2 x annual earnings

Flat amount:

  • $25,000
  • $50,000
  • $100,000

Schedule of Benefits:

Please refer to the table below for an example of an accidental death and dismemberment schedule of benefits:

  • Loss of life 100%
  • Loss of both arms or both legs 100%
  • Loss of both hands or both feet 100%
  • Loss of one hand and one foot 100%
  • Loss of one hand or one foot, and entire sight of one eye 100%
  • Loss of one arm or one leg 75%
  • Loss of one hand or one foot 75%
  • Loss of four fingers on the same hand 33 1/3%
  • Loss of thumb and index finger on the same hand 33 1/3%
  • Loss of four toes on the same foot 25%
  • Loss of use of both arms or both legs 100%
  • Loss of use of both hands or both feet 100%
  • Loss of use of one arm or one leg 75%
  • Loss of use of one hand or one foot 75%
  • Loss of entire sight of both eyes 100%
  • Loss of speech and loss of hearing in both ears 100%
  • Loss of entire sight of one eye 75%
  • Loss of speech 75%
  • Loss of hearing in both ears 75%
  • Loss of hearing in one ear 25%
  • Quadriplegia 200%
  • Paraplegia 200%
  • Hemiplegia 200%

Overall Maximum:

The overall maximum is the maximum amount of insurance the insurer will issue on any one life in a group over and above the non-evidence maximum.

Reduction Schedule:

The accidental death and dismemberment benefit will typically be reduced by 50% at age 65 under most plans. Following the reduction, it may reduce further or terminate at other stated ages.

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