Voluntary accidental death and dismemberment insurance, or VAD&D, is similar to a life insurance policy, but it provides extra economic protection in the case of a unexpected fatal accident or serious disability. VAD&D may provide a lump sum or staggered payments in the event of a accidental death, or a partial payment in the event of dismemberment or other severe disability.

VAD&D coverage usually comes with a maximum benefit, which is usually 10 times an employee's salary, so it is important to consider any existing life insurance policies while calculating the total coverage provided by VAD&D. It is important to note that VAD&D insurance will not provide any coverage in the case of a death caused by natural causes or intentional self-harm.

In the case of a mundane disability, some VAD&D policies may provide a range of benefits to ease the process of recovery and returning to work. These benefits may include lost wages, medical expenses, vocational retraining and/or travel expenses for medical assistance.

VAD&D policies can be purchased as a standalone through an insurance provider or as a rider to an existing life insurance policy. The cost of the VAD&D rider will depend on the extent of the coverage, but in most cases the monthly premium is relatively low. VAD&D policies can often be offered as a voluntary opt-in component of an employer's benefits package, which allows employers to set the cost of the rider and spread the cost among employees.

In summary, voluntary accidental death and dismemberment insurance is a supplemental form of insurance designed to provide economic protection in the case of accidental death, or serious disability resulting from an accident. VAD&D is often offered as part of an employment package or as a volutnary rider to an existing life insurance policy. While the coverage provided by a VAD&D policy is limited, it can provide valuable benefits that are not provided by other types of life insurance policies.