What does the Accidental Death & Dismemberment Rider cover?

What does the Accidental Death & Dismemberment Rider cover?

• A. Waiver of premium rider
• B. A death benefit if death occurs from an accident; dismemberment coverage for loss of limbs, sight and hearing caused by an accident
• C. Accelerated death benefit
• D. COLA adjustment

Answer: (B)

An Accidental Death & Dismemberment Rider provides benefits specifically for losses that result from an accident. It pays a death benefit if the insured dies due to an accident, and it also offers dismemberment coverage for defined losses such as loss of a limb, sight, or hearing caused by an accident. These benefits are typically a set percentage of the rider’s face amount and are limited to accidental events, not illnesses or natural causes. This rider is distinct from other riders like waiver of premium, accelerated death benefit, or COLA adjustments, which cover different features.

An Accidental Death & Dismemberment Rider provides benefits specifically for losses that result from an accident. It pays a death benefit if the insured dies due to an accident, and it also offers dismemberment coverage for defined losses such as loss of a limb, sight, or hearing caused by an accident. These benefits are typically a set percentage of the rider’s face amount and are limited to accidental events, not illnesses or natural causes. This rider is distinct from other riders like waiver of premium, accelerated death benefit, or COLA adjustments, which cover different features.