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AD&D or Life Insurance? Determining Your Needs

When it comes to planning for the end of life, there are two paths to consider: the accidental and the inevitable.

The inevitable path addresses the fact that none of us will live forever—and we make plans in our absence so the lives of our loved ones can go on, bills can still be paid, final expenses will be covered, and an ongoing quality of life will be maintained. All of this security and peace of mind can be achieved through life insurance.

The accidental path, on the other hand, has all of these same considerations but are dealt with in the context of an accidental, unexpected death. That coverage is called Accidental Death and Dismemberment, or AD&D.

While we give our members a free $1,000 AD&D insurance coverage1, it’s important to understand that AD&D is only a piece of a broader protection plan for your family—not a replacement. Life insurance is another key piece of that plan because while AD&D covers severe injuries and accidental death, life insurance can cover other situations which AD&D does not such as terminal illness or natural causes.

Is it covered?

As with most financial decisions we face, there are tradeoffs to consider when deciding between AD&D and life insurance. Of course we want to be covered regardless of circumstance, but at what price? 


A 35-year-old female in good health could get a $300,000 term life insurance policy for $14/month, or less than half the AD&D rate. The downside to Term Life is you’re only covered for the “term” which in this case spans twenty years. However, that same female could qualify for a Universal Life policy at $111/month or a Whole Life policy at $214/month. At this price point, she is covered her entire lifetime and will payout upon her death, regardless of cause, to provide for her loved ones well into the future.

In the end, it is important to know what you are covered for. If you work in a high-risk industry like construction, investing in AD&D is a smart move when you consider your likelihood to encounter a dangerous situation—especially when injury is more likely than death. Most of us, however, don’t face this level of threat daily so investing in a more robust life insurance policy may make more sense.

CommunityAmerica offers both AD&D and life insurance. To see what makes the most sense for you and your family, please contact one of our CommunityAmerica insurance advisors. 

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