Accidental Death Benefit

What Does Accidental Death Benefit Mean?

An accidental death benefit is a provision in a life insurance policy that requires the insurance company to pay the beneficiary an additional amount, beyond the regular death benefit, if the policyholder dies as a result of an accident. Typically, insurance companies conduct a thorough investigation into the circumstances of the policyholder’s death to confirm the cause and determine the validity of the claim before making any payment. The size of the extra payout and what does and doesn’t count as an accidental death vary between carriers, so it’s worth reading the fine print of an accidental death benefit policy before treating it as a substitute for higher base coverage.

This provision is also known as a double indemnity clause.

Insuranceopedia Explains Accidental Death Benefit

Although an accidental death policy defines “accidental death” as death resulting from an accident, it generally excludes deaths caused by illegal activities, acts of war, hazardous activities, and similar circumstances. It may also specify that death must occur within a certain period following a fatal accident. Individuals working in hazardous conditions may want to consider adding this coverage as a rider to their life insurance policy. Insurers that focus on life insurance for police officers and other high-risk roles sometimes include similar accident protection within the base policy rather than as a separate rider. Typically, the coverage ends when the insured reaches 70 years of age. Alternatively, accidental death and dismemberment (AD&D) policies can also be purchased separately.