What is the primary purpose of the Accidental Death and Dismemberment policy?

The primary purpose of an Accidental Death and Dismemberment (AD&D) policy is to provide benefits specifically for loss of life or certain injuries resulting from accidents. This type of insurance offers financial compensation to the insured individual or beneficiaries if the covered person dies due to an accident or suffers severe injuries, such as the loss of limbs or eyesight.

This policy differs from general medical insurance or life insurance as it does not cover all medical expenses related to illnesses or injuries but is narrowly focused on incidents occurring from accidents. By outlining specific benefits for accidental death and dismemberment, the policy addresses financial security related to unforeseen, catastrophic events, which is why option B accurately reflects the purpose of this insurance product.