What type of insurance pays benefits in case of accidental death or specific severe injuries?

Accidental death and dismemberment insurance is specifically designed to provide benefits in the event of an accidental death or serious injuries, such as the loss of limbs or other major body parts. This type of insurance focuses on accidents that result in fatal outcomes or significant physical impairments rather than illnesses or natural causes.

The benefits typically include a lump sum payment for accidental death and set amounts for different types of injuries, emphasizing the coverage for unexpected and severe scenarios. This makes it distinct from other types of insurance. Health insurance, for example, covers a variety of medical expenses, life insurance provides for named beneficiaries upon death but does not specifically address accidents, and disability income insurance is focused on providing income replacement for a person unable to work due to disability, which might not necessarily be connected to an accident. Thus, the focus on the direct consequences of accidental incidents in the chosen answer aligns perfectly with the defined purpose of this type of insurance.