What is the definition of Double Indemnity Benefit?
The Double Indemnity Benefit is an accidental death benefit that is paid in the event of an insured person’s accidental death. This is also called an Accidental Death Benefit. This is paid over and above the original death benefit. Hence, the name double indemnity benefit, since the beneficiaries stand to get double of the death benefit. The Double Indemnity Benefit is an optional rider that you can add to your basic life insurance policy. In the event that the cause of death of the insured is not clear, the insurance company does not have to pay for the double indemnity until such a time that the accidental death is proven. The Double Indemnity Benefit may also apply to other types of insurance, aside from life insurance. It may pay the insured or the beneficiaries double the coverage amount if a certain loss happens caused by a specified set of circumstances.
