Accident and occupational coverage address different triggers. Accidental death and dismemberment (AD&D) pays scheduled benefits for specified accidental losses. Disability insurance replaces covered income loss. Workers’ compensation addresses qualifying workplace injuries under applicable systems. This unit compares the triggers and shows how premium funding can affect tax treatment.
Learning path
- Disability, AD&D, and Workers' Compensation : Accidental death and dismemberment triggers and scheduled loss benefits, plus disability riders and workers’ compensation basics.
- Occupational Coverage and Tax Treatment : Work-related versus non-work-related injuries, policy coordination or exclusions, employer and employee premium contributions, and general tax effects.
Apply the unit
An employee breaks a hand at work and cannot perform the usual job for a month.
- Separate the possible workers’ compensation, disability-income, and AD&D questions.
- The accident alone does not establish that all three policies pay.
Study checkpoint
- Can you distinguish accidental death from death generally?
- Can you tell occupational from nonoccupational coverage?
- Can you explain how the governing program and premium funding affect benefits and tax treatment?