What Does Accidental Death Benefit Mean?
An accidental death benefit is a provision in a life insurance policy that stipulates that the insurance company would need to pay the beneficiary in addition to the death benefit if the policyholder were to die in an accident. Typically, insurance companies would carry out a thorough investigation of the circumstances of the policyholder's death to verify the cause of death and determine whether the claim is valid before paying.
It is also known as a double indemnity clause.
Insuranceopedia Explains Accidental Death Benefit
Although an accidental death policy defines "accidental death" as death caused by an accident, it generally excludes death due to illegal activities, acts of war, hazardous activities, etc. It may also stipulate that death must occur within a set period in the case of a fatal accident. Individuals who work in dangerous conditions may want to consider purchasing it as a rider to their life insurance policy. The coverage typically ends once the insured reaches 70 years of age. Alternatively, you can purchase accidental death & dismemberment (AD&D) policies separately.