What is the Accidental Death Benefit?

What is the Accidental Death Benefit?

• A. A rider that pays double or triple the face amount if death is due to an accident.
• B. A rider that pays only if death occurs in a hospital.
• C. A rider that refunds premiums upon death.
• D. A rider that pays extra if death is due to natural causes.

Answer: (A)

An Accidental Death Benefit is an optional rider that adds extra protection by paying an additional amount if the insured dies as the result of an accident. It typically increases the payout to a multiple of the policy’s face amount, often doubling or tripling the standard death benefit, on top of what the base policy would pay. This benefit only applies to deaths caused by accidents, not natural causes or illnesses, and it isn’t a refund of premiums. In many plans, the accident must be the proximate cause and occur within a specific time frame after the accident, with certain exclusions in place. So the best description is that this rider pays double or triple the face amount if death is due to an accident.

An Accidental Death Benefit is an optional rider that adds extra protection by paying an additional amount if the insured dies as the result of an accident. It typically increases the payout to a multiple of the policy’s face amount, often doubling or tripling the standard death benefit, on top of what the base policy would pay. This benefit only applies to deaths caused by accidents, not natural causes or illnesses, and it isn’t a refund of premiums. In many plans, the accident must be the proximate cause and occur within a specific time frame after the accident, with certain exclusions in place. So the best description is that this rider pays double or triple the face amount if death is due to an accident.