Definition - What does Double Indemnity mean?
Double indemnity is a clause in a life insurance policy that says the insurance company will pay twice the amount of the face value should the death of the insured result from an accident.
Insuranceopedia explains Double Indemnity
Double indemnity does not cover natural death or one that results due to natural causes, such as aging, or a health condition, suicide, and gross negligence. Thus, it covers murder of the insured committed by a person other than the beneficiary of the policy and accidents, e.g. car accidents.
People who are employed in dangerous jobs are often not qualified for policies with a double indemnity provision. However, insurance companies that offer this benefit charge higher premiums.
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