Accident insurance, also known as accidental death and dismemberment insurance normally functions as a supplemental rider that pays an additional sum of money in conjunction with the normal life insurance policy if the beneficiary dies as a result of an accident. Many of these policies will also pay out a lump sum in the case of accidental dismemberment. For instance, if the beneficiary lost a finger in a freak accident the policy would determine how much would be paid out per finger. All dismemberment payouts are predetermined in the policy.
There are normally some common exclusions that are included in the policy. Some common exclusions are death by suicide, illness, war injury and non-commercial radiation.