Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
50% - Moderately

Accidental Death and Dismemberment Insurance

Synonyms:accidental death coverage, accidental death insurance, death and dismemberment coverage
Filed Under: estate-management, insurance
Tags: accident insurance, insurance, life insurance

Definition of accidental death and dismemberment insurance

accidental death and dismemberment insurance
1. An insurance policy that provides coverage in the event of an accidental death or dismemberment, which can include the loss, or the use of certain body parts (including limbs or eyesight). Natural deaths are not covered by accidental death and dismemberment insurance policies, and the policy is only available attached as a rider to a health or life insurance policy. Depending on the policy, partial dismemberment (the loss of a single eye for example) may not qualify the insured for benefits.

Related Terms and Acronyms:

  • accidental death benefit (ADB)   An additional benefit that pays an additional sum to a beneficiary if the cause of death is deemed to be accidental.
      ➥  A life insurance policy rider.
  • burial insurance   Insurance that provides coverage for funeral expenses.
  • death benefit (DB)   A payment or series of payments made to the beneficiaries of a life insurance policy.
      ➥  An amount paid to a beneficiary in a life linsurance policy.
  • life insurance   An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
      ➥  CanEquity offers life insurance.
  • travel insurance   Insurance that covers a number of events that can occur when an individual is travelling out of the province or country.

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