Question 44

The accidental death benefit rider is also known as double indemnity.

The accidental death benefit rider is commonly referred to as double indemnity, which means that the policyholder's beneficiaries may receive double the face value of the policy in the event of an accidental death.

A) incontestability.

Incontestability refers to a clause in an insurance policy that prevents the insurer from contesting the validity of a policy after it has been in force for a certain period, typically two years. This term does not relate to the accidental death benefit rider and is therefore incorrect.

B) double indemnity.

Double indemnity is the correct term for the accidental death benefit rider. This rider provides additional coverage, ensuring that if the insured dies due to an accident, the beneficiaries receive double the death benefit specified in the policy, making this option accurate.

C) waiver of premium.

The waiver of premium is a provision that allows the policyholder to skip premium payments if they become disabled and unable to work. This concept is unrelated to the accidental death benefit rider, making it an incorrect choice.

D) guaranteed insurability.

Guaranteed insurability is a feature that allows the policyholder to purchase additional insurance coverage at specified times without having to provide evidence of insurability. This option does not pertain to the accidental death benefit rider and is therefore incorrect.

Conclusion

Double indemnity accurately describes the accidental death benefit rider, as it specifically relates to the increased payout in cases of accidental death. The other options— incontestability, waiver of premium, and guaranteed insurability—do not pertain to this rider, thereby confirming that they are incorrect. Understanding these terms is crucial for navigating life insurance policies effectively.