Accidental Death Benefit

An additional provision in life insurance policies which provides payment if the cause of death is determined to be as a result of an accident, usually expressed as a multiple of the base amount of insurance. If the multiple is two times, the policy is said to have “Double Indemnity”. However, due to the very low incidence of accidental death, coupled with strict definitions in insurance contracts, these benefits should not be considered in insurance coverage, financial or estate plans. See Also “Accidental Death and Dismemberment”

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May 20th, 2024