Question

Richard Beck has a life insurance policy which he has modified to include an accidental death benefit payable to his son and daughter. This modification has most likely been done by attaching a(n) ____ to the policy.
1. double indemnity provision
2. accelerated benefits

Answer 1

Answer:

The correct answer is number (1): double indemnity provision.

Explanation:

A double indemnity provision is added in life insurance to double the amount the beneficiaries of the policyholder receive in front of his or her death in an accident. Double indemnity provision does not cover events in which the policyholder dies because of natural reasons or when those individuals had hazardous jobs. Premiums are higher with a double indemnity provision.