Under what conditions is the principal sum payable under an Accidental Death and Dismemberment policy?

The principal sum under an Accidental Death and Dismemberment (AD&D) policy is specifically payable when the insured dies as a result of an accident. AD&D policies are designed to provide benefits in extreme circumstances such as accidental deaths or the loss of limbs or functions due to an accident. The key aspect of these policies is their focus on accidental incidents, distinguishing them from other causes like illness or natural causes. Therefore, when the insured's death is directly linked to an accident, the policy activates, paying out the principal sum to beneficiaries as specified in the terms of the insurance contract. This aligns with the foundational purpose of AD&D coverage, which is to offer financial protection specifically for unforeseen and accidental injuries or fatalities.