Accidental Death Benefit
Barron's Finance & Investment Dictionary:
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Accidental Death Benefit
value paid to the benficiary of an accidental death insurance policy or a life insurance policy having an accidental death clause or rider, in the event the insured dies because of an accident. Such policies or clauses often provide also for bodily injury causing various forms of dismemberment, in which case the benefit is paid to the insured. Double or triple idemnity policies pay twice or three times the face value of the policy. Exclusions typically apply to death or injury caused by war, illegal activities, or noncommercial aviation. Time (meaning death or dismemberment must occur within a specified period following an accident) and age limits usually apply.
| Acceptance, Acceleration Clause | |
| Accommodation Endorsement, Accommodative Monetary Policy |
West's Encyclopedia of American Law:
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Accidental Death Benefit
This entry contains information applicable to United States law only.
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.
Investopedia Financial Dictionary:
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Accidental Death Benefit
The payment due to the beneficiary of an accidental death insurance policy, which is often a clause or a rider connected to a life insurance policy. The accidental death benefit is usually an amount paid in addition to the standard benefit payable if the insured died of natural causes.
Depending on the issuer of the policy, the accidental death benefit may extend up to a year after the initial accident occurred, so long as the accident led to the insured's death.
Investopedia Says:
Accidental death, as defined in accidental death insurance policies, is any death strictly due to accident. It typically excludes such things as acts of war, death caused by illegal activities, etc. Hazardous hobbies in which the insured regularly engages are generally specifically excluded as well. In the case of a fatal accident, death usually must occur within a period of time specified in the policy.
Accidental death benefit riders should be considered for people who work in or around potentially hazardous environments, and can be used to beef up the benefit paid to beneficiaries. These riders typically end once the insured person reaches the age of 70.
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Barron's Finance & Investment Dictionary
Dictionary of Finance and Investment Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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West's Encyclopedia of American Law
West's Encyclopedia of American Law. Copyright © 1998 by The Gale Group, Inc. All rights reserved.
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