Double indemnity
Double indemnity is a clause or provision in a life insurance or accident policy whereby the company agrees to pay the stated multiple (i.e. double) of the face amount in the contract in cases of accidental death. An accidental death is a death that is neither intentionally caused by a human being, such as murder or suicide, nor from natural causes, such as cancer or heart disease.
In 2004, 4.67% of all deaths in the United States were declared accidental.[1] For this reason, double-indemnity clauses are usually relatively cheap and often aggressively marketed, especially to people over 45. Children and people in dangerous jobs, such as heavy construction, are the exceptions.[2]
References
- ^ "Final Deaths 2004" (PDF) (Press release). Centers for Disease Control and Prevention. November 2006. Retrieved 2006-12-30.
- ^ "Basics of Accidental Death & Dismemberment Insurance". insurance.com. Retrieved 2006-12-30.