Triple Indemnity

What Does Triple Indemnity Mean?

Triple indemnity refers to an accident rider attached to a life insurance policy, which stipulates that if the insured dies in an accident specified in the policy, the beneficiaries will receive three times the face amount of insurance. To activate this triple benefit, the insured’s accidental death must occur while riding as a passenger in a public transportation vehicle on its regular route, such as a bus, train, or plane, or while in an elevator inside a building on fire. Because this rider only pays out under narrow circumstances, anyone considering it should look closely at how it compares with a standard accidental death benefit, which has broader triggers but a smaller multiplier.

Insuranceopedia Explains Triple Indemnity

A triple indemnity rider is typically included as part of the accidental death clause, where double indemnity is also available for specified accidental deaths. Not every insurer offers a triple indemnity rider, so it pays to check what add-ons are available when shopping among the best life insurance companies. Accidental deaths resulting from war are generally excluded from coverage. Additionally, the death must occur within 90 days of the accident. There is also an age restriction for acceptance: the rider is usually available only to applicants who are 60 years old or younger. If a covered accident does occur, the payout still goes through the normal claims process, and the steps for how a beneficiary collects on a life insurance policy apply the same way.