Florida Insurance Licensing Practice Exam 2026 - Free Insurance Licensing Practice Questions and Study Guide

Accidental death and dismemberment insurance is a specific type of insurance policy designed to provide financial benefits in situations where the insured suffers a severe injury or death due to an accident. This type of coverage specifically pays out when injuries result from non-intentional events, such as car crashes, falls, or other unforeseen incidents, distinguishing it from life insurance that typically covers natural causes or sickness.

The benefits from such a policy can include payouts for the loss of limbs, eyesight, or other critical bodily functions if they occur due to an accident. It often serves as a supplement to life insurance policies, providing additional security for policyholders and their families in the case of tragic events.

Other options like those focused on natural causes of death, disability from non-accidental injuries, or health-related issues do not pertain to the essence of accidental death and dismemberment insurance, which is fundamentally based on the occurrence of accidents leading to either death or disabling injuries.