Life and AD&D (Accidental death and dismemberment) insurance are forms of life insurance that provide financial support to a policyholder's survivors or beneficiaries in the event of the policyholder's death or accidental dismemberment.
Life insurance provides financial support to a policyholder's beneficiaries or family in case of the individual's death. Depending on the policy, the beneficiaries may receive a lump-sum payment or periodic payments.
AD&D insurance is very similar to life insurance. However, AD&D insurance pays policy benefits to survivors or beneficiaries if the policyholder dies or loses a limb, sight, speech, or hearing due to an accident.
When deciding which type of insurance is best for you, consider the following:
Your age and health: Your insurance needs will depend on your age and health. An older policyholder might need more life insurance to provide for a family, whereas younger individuals might not need life insurance until they are married or have dependents.
Your financial goals: Life insurance can be used for a variety of purposes, such as providing for your family in the event of your death or paying off debts. Consider your own goals and determine the amount of insurance you need.
Your coverage needs: Some policies only cover death, while other policies provide coverage for disability as well. Consider the type of coverage you need and decide what type of plan is best for you.
For more information, see this article on life and AD&D insurance: