What type of insurance pays benefits in the event of accidental death or severe injury resulting in dismemberment?

Accidental death and dismemberment insurance is specifically designed to provide benefits in cases of accidental death or severe injuries resulting in dismemberment. This type of insurance focuses on unforeseen accidents, offering financial support to beneficiaries when an insured individual loses their life due to an accident or if they suffer significant injuries that lead to the loss of limbs or bodily functions. The coverage applies directly to the consequences of accidents, making it distinct from other insurance types that may not address these specific circumstances.

Term life insurance, universal life insurance, and long-term disability insurance serve different purposes. Term life insurance provides benefits upon the death of the insured, but not specifically for accidental deaths alone or for dismemberment. Universal life insurance includes a death benefit and a cash value component but is also not limited to accidental incidents. Long-term disability insurance offers income replacement for individuals who are unable to work due to illness or injury, without focusing on the nature of the injury being accidental or linked to dismemberment. Thus, the correct choice is clearly aligned with the distinct focus and offerings of accidental death and dismemberment insurance.