Accidental Death & Disbursement
What is Accidental Death & Disbursement Insurance?
In insurance, Accidental Death and Dismemberment (also known as AD&D) is a policy that pays benefits to the beneficiary if the cause of death is due to an accident. This is a limited form of life insurance which is generally less expensive.
No matter how careful someone is, accidents unfortunately happen. AD&D insurance helps to ensure protection for a member and their family in the event of an accident that results in death or serious injury. Personal Accident Insurance is an easy and affordable way to supplement existing life insurance or obtain coverage if you don’t qualify for traditional life insurance. Should a fatal accident happen to you and/or your spouse, it can provide extra financial security to your loved ones by helping them to maintain their standard of living, cover final expenses, and more. It can be purchased on a single or a family rate basis and provides extra protection in the event of an accident. The amount that is paid will depend upon the type of injury. The more serious the injury or accident, the greater the payment will be. AD&D coverage is one more informed way to help ensure financial protection is available for members and their loved ones.
In the event of accidental death, this insurance will pay benefits in addition to any life insurance but only up to a set amount total regardless of any other insurance held by the same insurer, held by the client. This is called double indemnity coverage and is often available even when accidental death insurance is merely an add-on to a regular life insurance plan. Some of the covered accidents include traffic accidents, exposure, homicide, falls, heavy equipment accidents, and drowning. Accidental deaths are the fifth leading cause of death in Canada as well as in the U.S.
Accidental death insurance is not an investment vehicle and thus clients are paying only for sustained protection. Insurance premiums are expected to rise in time. Most policies have to be renewed periodically (with revised terms), although the client's consent with renewal is often implicitly assumed. If enrolled, an employee and/or insured family members are covered 24 hours a day, 365 days a year against covered accidents in the course of business or pleasure. Coverage includes (but is not limited to) accidents on or off the job, in the home, while driving an automobile, traveling as a passenger by train, airplane (except as limited by Exclusions explained below), automobile, or other public or private conveyance. The benefits provided under this plan are payable in addition to any other insurance which may be in effect at the time of the accident. There are no geographical limits, it is worldwide accident protection.
Eligible persons for voluntary insurance:
- All active employees of the University of Ottawa, under the age of 70, eligible for insurable benefits according to University rules and, their spouses and unmarried dependent children, who subscribe to Plan I or Plan II.
- "Spouse" shall mean either is married through an ecclesiastical or civil ceremony to an employee, oralthough not legally married to the employee, continuously cohabits with the employee in a conjugal relationship which is recognized as such in the community in which they reside for at least 1 year at the time a claim is incurred and who has been declared as their spouse to the employer.
- The term “conjugal relationship” shall be deemed to include a conjugal relationship between partners of the same sex.
- “Child” a person who:
- A newborn child shall become insured from the moment of birth.
Any mentally or physically handicapped child who was insured up to the maximum age shall remain insured beyond such age provided the child, upon reaching the maximum age and thereafter, is incapable of self-sustaining employment and totally relies upon the employee for support and maintenance. Medical information may be required to provide coverage for any such dependent. The onus will be on the part of the employee to provide an initial and follow-up medical information that may be required to continue this coverage...