What Is AD&D Life Insurance? 
AD&D stands for Accidental Death and Dismemberment . This type of coverage only pays a death benefit when certain conditions are met . If the insured dies by illness , the policy pays out nothing . For example , if the insured dies in a car accident , the policy would payout the proceeds to the beneficiary . However , if the insured dies of an illness -LRB- e.g. a heart attack -RRB- , no proceeds will be paid to the beneficiary . This type of coverage can be extremely cheap , however , the risk of dying by accident is very nominal compared to the risk of dying by illness , especially as you get older . Full coverage policies feature higher premiums than AD&D policies , but are very affordable and the ability for the policy to pay proceeds in the event of death by illness is crucial . 