Accidental death and dismemberment coverage provides you and your family with the security of knowing that in the event of a tragic accident, your family will be financially stable. If your loved one passes away or becomes dismembered after an unexpected disability accident, this type of insurance may pay out benefits to help you cover medical costs and continue paying daily living expenses, such as mortgage or rent, or it may pay a lump sum one-time payment. Unlike life insurance, accidental death and dismemberment coverage provides disability benefits if the insured loses a limb, speech, hearing or sight from an accident. The comparatively low premiums of this type of insurance, compared to its substantial payouts, make this a wise investment for any family or business.