AD&D Insurance (also known as Accidental Death & Dismemberment) can provide coverage in a few different ways:

1. It can offer compensation to a designated beneficiary in the event of the policy holder's accidental death. It will not pay out if the policy holder is in some way responsible for the circumstances (such as driving under the influence). Many policies do not cover 'risky activities', such as skydiving or rock climbing. 


2. It can also provide compensation to the policy holder in the event of limb dismemberment, loss of sight, speech or hearing. 

AD&D insurance is different from life insurance, as it excludes all deaths resulting from illness. It’s truly just for accidental circumstances.