Everything You Need Know About the Accidental Death and Dismemberment (AD&D) Insurance

By May 21, 2020Benefits

Being a federal employee, you may have heard of Optional Insurance and other best federal government retirement benefits provided by the Federal Employees’ Group Life Insurance (FEGLI). But you may not know that FEGLI also offers an extra benefit called the Accidental Death and Dismemberment (AD&D) Insurance.

What is AD&D Insurance?

AD&D Insurance provides you with monetary benefits in the event of an accident that results in the loss of a limb or eyesight. It also offers benefits to your survivors in the event of a fatal accident. To be able to receive benefits in either case, the loss or death must occur within one year of the accident and must be a direct result of an injury that occurred in that accident and not from any other cause.

How Much Does it Cost?

Unlike Optional Insurance in which you pay the full amount, AD&D provision is automatically included in your Basic Insurance at no additional cost. It is the same as the Basic Insurance Amount (BIA) but does not cover the Extra Benefit.

Besides Basic Insurance, Option A-Standard, which is worth exactly $10,000 for federal employees, also includes AD&D at no additional cost. However, Option B and Option C do not cover it.

How Much Would You Receive Under AD&D?

To better understand your benefits under AD&D, you need to know your current coverage. Basic Insurance equals the greater of your Basic pay rounded up to the next $1,000 plus $2,000. And Option A offers $10,000.

Now, if you die in an accident, your survivors would receive AD&D death benefits in addition to your FEGLI plan benefits. The amount for the AD&D death benefit is the same as the principal amount of your FEGLI plan. For example, if your Basic coverage is $90,000, your survivors would receive $180,000 ($90,000 of Basic Insurance + $90,000 of AD&D).

In case of a loss of a limb, hand, foot, or sight of an eye, you will get half of the principal amount of your FEGLI plan. However, if you lose two or more limbs or the sight of both eyes, you will receive the full amount of your FEGLI plan.

Important Things to Know About AD&D

  • Ad&D coverage stops with your federal employment.
  • Ad&D does not carry into retirement.
  • Ad&D does not cover individuals insured as compensationers.

If you are looking for a FEGLI life insurance calculator to better determine your deduction, benefits, and cost, get in touch with us. We help calculate your pension and Social Security Supplement if it applies. We also go over your survivor benefits and determine the costs to see if that is an option to take.

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