Life comes with no expectations or guarantees; an accident or otherwise unexpected mishap could leave a Colorado family grieving for a relative killed in an accident. Sometimes, the victim may survive but suffer a dismemberment that now impacts their ability to work. Life or health insurance policies may contain a rider for such incidents, so beneficiaries could claim the additional settlement the rider provides.

The death and dismemberment clause

Accidental death or dismemberment, or AD&D, claims may allow beneficiaries to receive significantly more money than the “standard payout” on a policy. For example, someone may carry $100,000 in life insurance and purchase additional AD&D for a nominal added fee. An example could be $300,000 in additional coverage if someone dies in a car accident, plane crash or other unexpected tragedy.

The dismemberment clause might come into effect if someone lost a limb in an accident. Losing an arm could dramatically impact a career. The settlement money may assist the accident victim when dealing with the economic fallout and resulting life changes.

AD&D coverage may help

A standard life insurance policy pays a set amount of money when someone passes away. However, there are no additional payments for accidental deaths without the AD&D rider. Purchasing AD&D coverage may provide necessary financial support when a family loses a loved one without any warning or expectation. Someone’s unexpected passing may entirely upend personal and business matters. At least the added insurance settlement could help family members deal with the financial side of the tragedy.

Filing a claim would require presenting the necessary proof of accidental death. While family members may deal with grief and stress after a relative dies, submitting all the necessary items to process the claim properly becomes essential. Otherwise, the claim could face delays or, worse, a denial.