Also called “Double Indemnity,” accidental death benefit is a life insurance policy feature that triggers a double payout to the beneficiary when the insured dies from accident or dismemberment.
Following death, the insurance company that issued the policy will conduct a thorough investigation to determine whether or not death actually occurred due to accident. If the death is ruled accidental, it will then calculate benefits and pay out twice the policy’s face value.
However, time and age limits usually apply. For example, the insurance policy may specify that the insured must die within 90 days of the accident and be 60 years of age or less. Injuries and death due to war, illegal activity and noncommercial aviation often apply.
The section of the life policy that contains accidental death benefit information is known as the “double indemnity clause.”