What Is a Life Insurance Double Indemnity?

Life insurance double indemnity is an extra type of coverage that you can sometimes purchase with a life insurance policy to provide you with additional benefits. Here are the basics of life insurance double indemnity and how it works.

Life Insurance Double Indemnity

With a traditional life insurance policy, your beneficiary is going to receive the face value of your policy when you die. With life insurance double indemnity, you can actually create a larger payment for them if you die from an accidental death. Life insurance double indemnity is an additional coverage that you can purchase that is going to double the amount of the face value of your policy if you die from an accident.

Accidental Death

The odds of dying from an accidental death are not very high. In fact, less than 5 percent of deaths are ruled an accident. These are deaths that occur from some other means besides murder, suicide, or health related issues. Since there is a low likelihood of accidental death, insurance companies can usually sell this additional coverage for a very nominal fee. This type of coverage can be very beneficial to individuals that work in dangerous industries in which they could die accidentally.

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