Accidental Death Insurance

Published: | Updated: August 28, 2016

Definition - What does Accidental Death Insurance mean?

Accidental death insurance is a policy stipulating that compensation will be given to a beneficiary if the insured dies due to unintentional or unforeseen causes. This policy is usually recommended for those who work or live in hazardous places as it eases the financial losses a beneficiary might encounter due to the accident that results in the death of the insured.

Accidental death insurance is also known as double indemnity insurance.

Insuranceopedia explains Accidental Death Insurance

Accidental death insurance covers death due to such accidents as drowning, traffic accidents, homicide or heavy equipment malfunction. It excludes death caused by a risky sport or hobby, surgeries, illnesses and drug overdose however.

For the beneficiary to file a valid claim, the accident must have directly caused the death of the policyholder, and death must occur within the period specified in the policy and before the age limit of the policyholder is reached. It can be purchased as a standalone policy or a supplemental policy in addition to an existing life insurance policy.


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