How should beneficiaries be chosen for accidental death & dismemberment insurance, given that I may or may not be alive when it is paid out?

Question

I am signing up for accidental death & dismemberment insurance through my employer, but I'm a bit confused as to how to handle the beneficiaries for this. I have to choose the same beneficiaries, regardless of how it is awarded. The ideal situation would be:

• If I am dismembered (say, I lose an arm), I would like to receive the money to help me pay for my own expenses.
• If I die, then I would like my beneficiaries to receive my money, since I can't use it because I'm dead.

There would be delays if the money went to the wrong party. While I trust my beneficiaries to give me money if it were sent to them, I'd rather that they not have to worry about writing checks to me. And if I'm dead, I'd rather they have the money quickly rather than having to go through the hassle of figuring out inheritance.

Given this conundrum, how should beneficiaries be chosen for accidental death & dismemberment insurance?

Answer 1

Generally, the beneficiary for AD&D is only paid in the event of an accidental death. In the event of dismemberment the insured is paid not the beneficiary. You're specifying the beneficiary for the death benefit.