Define: Accidental Death Benefit

Accidental Death Benefit
Accidental Death Benefit
Quick Summary of Accidental Death Benefit

A provision of a life insurance policy stating that if the insured—the person whose life has been insured—dies in an accident, the beneficiary of the policy—the person to whom its proceeds are payable—will receive twice the face value of the policy.

The insurance company that is liable for the payment of such a benefit will conduct a thorough investigation into the cause of death of the insured person before paying the claim.

Another name for an accidental death benefit is a double indemnity clause.

What is the dictionary definition of Accidental Death Benefit?
Dictionary Definition of Accidental Death Benefit

Accidental Death Benefit is a provision in an insurance policy that provides an additional pay-out to the beneficiary in the event that the insured person dies due to an accident. This benefit is typically offered as an add-on or rider to a life insurance policy and is designed to provide financial support to the beneficiary in case the insured’s death is sudden and unexpected. The accidental death benefit is usually paid in addition to the base life insurance coverage and can help cover funeral expenses, outstanding debts, or provide a financial cushion for the beneficiary’s future needs.

An accidental death benefit is a payment paid to a beneficiary after an accidental death. The amount is paid by an insurance company if the insured dies from natural causes. Under most conditions, the accidental death benefit extends up to a year after the initial accident if the beneficiary can prove the death was caused by the accident. Insurers are notorious for attempting to deny accidental death policies by looking for exclusions. For example, some accidental death claims have been denied for automobile accidents if the insurer can find any evidence of negligent or intoxicated driving on the part of the deceased, which they will use to deny coverage. Many claimants find their claim denied but are able to get legal representation to assist them in preparing their appeal to make sure they get the insurance benefits they are entitled to receive.

Full Definition Of Accidental Death Benefit

An accidental death benefit is an amount paid to a beneficiary or beneficiaries named in an insurance policy if and only if the insured dies in an accident or as a result of injuries suffered in an accident. Often, the accidental death benefit is purchased as a rider on the policy. A person might choose to include an accidental death benefit clause or rider if their occupation puts them at a higher risk of having an accident. Jobs that require a lot of driving, heavy lifting, or working amidst moving vehicles or with heavy machinery are possible work situations that would motivate the purchase of an accidental death benefit rider. Depending on the policy, beneficiaries are eligible to collect the accidental death benefit up to a year after an accident if the victim survives for a time afterwards. Policies with an accidental death benefit clause may have a provision to pay benefits to the insured if the insured is dismembered but survives an accident. Death from non-commercial aviation or other hazardous hobbies, illegal activities, or war is often excluded from accidental death benefit coverage. Typically, accidental death benefit riders expire once the insured reaches a certain age. The maximum age varies with the policy and will be included in the accidental death benefit clause.

 

 

Accidental Death Benefit FAQ'S

An Accidental Death Benefit is a type of insurance coverage that provides additional financial compensation in the event of the insured’s death resulting from an accident.

Unlike regular life insurance, which typically pays out regardless of the cause of death, Accidental Death Benefit only pays out if the insured dies as a direct result of an accident covered by the policy.

Accidents covered by Accidental Death Benefit policies may include vehicle accidents, falls, drowning, poisoning, burns, electrocution, and other unforeseen events resulting in death.

Exclusions vary depending on the insurance policy, but common exclusions may include death due to self-inflicted injuries, suicide, acts of war, drug overdose, and engaging in high-risk activities not covered by the policy.

The benefit amount for Accidental Death Benefit is typically predetermined by the insurance policy and specified in the contract. It may be a fixed sum or a multiple of the insured’s regular life insurance coverage.

Accidental Death Benefit coverage is generally more affordable compared to regular life insurance because it provides coverage for a specific risk (accidental death) rather than all causes of death.

Yes, Accidental Death Benefit can often be added to existing life insurance policies as a rider or supplementary coverage for an additional premium.

Accidental Death Benefit coverage can provide financial protection for the insured’s beneficiaries, such as family members or dependents, in the event of the insured’s accidental death.

Waiting periods may vary depending on the insurance policy, but some policies may have a waiting period before coverage for accidental death becomes effective.

Accidental Death Benefit coverage is typically available through insurance companies, brokers, or financial advisors. You can inquire about adding this coverage to your existing life insurance policy or purchase a standalone Accidental Death Benefit policy.

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Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 11th April 2024.

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