An Accidental Death and Dismemberment Rider pays a death benefit upon which event?

An Accidental Death and Dismemberment Rider pays a death benefit upon which event?

• A. A rider that pays medical expenses
• B. A rider that pays disability benefits
• C. A death benefit rider which pays a multiple of the face amount upon accidental death, loss of sight, or loss of 2 limbs.
• D. A rider that pays only if death occurs in hospital

Answer: (C)

An Accidental Death and Dismemberment Rider pays out when an accident causes either death or specified losses. The key idea is that benefits are triggered by accidents, not by illness or routine medical events. It provides a death benefit if the insured dies accidentally, and it also pays for certain dismemberments—such as loss of sight or the loss of two limbs—often as a multiple of the policy’s face amount. This combination—a multiple of the face amount for accidental death and for listed losses like sight or limb loss—is what distinguishes the AD&D rider. Other options describe medical expenses, disability benefits, or hospital-only death, which aren’t how the AD&D rider operates. Therefore, the correct description is a rider that pays a multiple of the face amount upon accidental death, loss of sight, or loss of two limbs.

An Accidental Death and Dismemberment Rider pays out when an accident causes either death or specified losses. The key idea is that benefits are triggered by accidents, not by illness or routine medical events. It provides a death benefit if the insured dies accidentally, and it also pays for certain dismemberments—such as loss of sight or the loss of two limbs—often as a multiple of the policy’s face amount. This combination—a multiple of the face amount for accidental death and for listed losses like sight or limb loss—is what distinguishes the AD&D rider. Other options describe medical expenses, disability benefits, or hospital-only death, which aren’t how the AD&D rider operates. Therefore, the correct description is a rider that pays a multiple of the face amount upon accidental death, loss of sight, or loss of two limbs.