In an Accidental Death and Dismemberment Rider, the principal sum equals what?

In an Accidental Death and Dismemberment Rider, the principal sum equals what?

• A. 50% (single dismemberment)
• B. 100% (double dismemberment)
• C. 150%
• D. 200%

Answer: (B)

Principal sum is the base amount of coverage for the AD&D rider—the amount you would receive if death occurred accidentally. Dismemberment benefits are paid as a percentage of that base. A single dismemberment pays 50% of the base, while losing two parts (double dismemberment) pays 100% of the base. So the principal sum represents the full amount of coverage, and double dismemberment yields the entire base amount. For example, with a principal sum of 50,000, accidental death pays 50,000; two lost limbs also pay 50,000; a single limb loss would pay 25,000.

Principal sum is the base amount of coverage for the AD&D rider—the amount you would receive if death occurred accidentally. Dismemberment benefits are paid as a percentage of that base. A single dismemberment pays 50% of the base, while losing two parts (double dismemberment) pays 100% of the base. So the principal sum represents the full amount of coverage, and double dismemberment yields the entire base amount. For example, with a principal sum of 50,000, accidental death pays 50,000; two lost limbs also pay 50,000; a single limb loss would pay 25,000.