What is AD&D insurance?
AD&D is accident-only insurance. Under federal law it's an "excepted benefit," meaning it isn't health coverage and doesn't have to follow ACA rules. It's also different from life insurance. Life insurance generally pays when you die from almost any cause, including illness. AD&D pays only when death or injury is caused by a covered accident.
Who it may fit
- People who want accident protection for their family
- People in jobs or activities with higher accident risk (check exclusions first)
- People who already have life insurance and want an accident benefit on top
- People who can't easily qualify for life insurance and understand that AD&D won't pay for death from illness
What it pays
The policy sets a benefit amount (the "principal sum"). It typically pays:
- The full amount for accidental death
- A set percentage for covered losses, like one hand, foot or eye, or for losing speech or hearing, according to the policy's schedule
Most policies require that the death or loss happens within a set time after the accident, often within a few months. The policy states the exact time.
What it doesn't pay
AD&D does not pay for death or loss from illness or disease. Common exclusions include (each policy differs):
- Illness, disease, or medical or surgical treatment
- Suicide or self-inflicted injury
- Drug overdose, or accidents while intoxicated
- War or military service
- Certain hazardous activities or private aviation
- Injury while committing a crime
AD&D doesn't pay medical bills, either. You still need a health plan.
How it compares to an ACA plan
They do completely different jobs. An ACA plan pays for your medical care. AD&D pays a lump sum for specific accidental losses. AD&D isn't health coverage, can't get premium tax credits, and doesn't count as minimum essential coverage. Many people have both.
Costs and how it's priced
AD&D premiums usually depend on the benefit amount you choose and who's covered. Some policies also consider age or occupation. Because it pays only for accidents, it often costs less than life insurance with the same benefit amount, but it also pays in far fewer situations. An agent can show you prices.
How to enroll with a licensed agent
1. Decide on a benefit amount and who should receive it. 2. Review the exclusions and the loss schedule with your agent. 3. Compare policies from the insurance companies we represent in your state. 4. Apply and name your beneficiary. 5. Tell your family where to find the policy.
Frequently asked questions
Is AD&D the same as life insurance?
No. Life insurance generally pays for death from most causes, including illness. AD&D pays only for covered accidents.
Does AD&D pay medical bills?
No. It pays a lump sum for covered death or specific losses. You still need health coverage.
What if death happens weeks after the accident?
The policy usually pays if death or loss happens within a set time after the accident. Check your policy.
Does it cover a heart attack or stroke?
Generally no. Those are usually considered illnesses, not accidents.
Do I need to answer health questions?
Many AD&D policies don't ask health questions. Some have age or other eligibility rules.
Important information
This AD&D policy pays a benefit only when a covered accident causes death or a covered loss. Death or loss from illness or disease is not covered, so it does not replace life insurance, and it does not pay medical bills like health insurance. It has exclusions, limitations, reductions of benefits, and terms under which the policy may be continued in force or discontinued. For costs and complete details of the coverage, call a licensed insurance agent at 1-877-861-3558.
Offered by First Health Solution, LLC d/b/a Health Enrollment, a licensed insurance agency (NPN 17718619). Insurance is underwritten by the insurance companies we represent. Not a government agency. Not available in all states.
Last reviewed October 2026. Not available in all states. This page is general information; see the policy for complete terms.