An insured has a $100000 policy with an accidental death benefit rider. If he dies on his way to work due to a heart attack what will the insurer pay?

Rationale

$100,000

The insurer will pay the face amount of the policy, which is $100,000, because the heart attack does not qualify as an accidental death under the policy terms. The accidental death benefit rider only applies to deaths resulting from accidents, not medical events.

A ($100,000) CORRECT

This is the correct answer as it reflects the policy's face value. Since the insured's death was due to a heart attack—classified as a natural cause rather than an accident—the insurer will only disburse the standard death benefit of $100,000.

B ($150,000) YOUR ANSWER

This option implies an additional benefit that does not apply in this scenario. The accidental death benefit rider would only add to the policy payout if the death were due to an accident. Since the cause of death was a heart attack, there is no additional payment.

C ($200,000) YOUR ANSWER

This choice suggests a doubling of the policy amount, which is often a feature of some accidental death benefits. However, in this case, the death was not caused by an accident, and therefore, the rider does not come into effect, resulting in no additional payout.

D ($250,000) YOUR ANSWER

This option incorrectly assumes that both the base policy and the rider provide benefits for the heart attack scenario. Since the death was due to a natural cause, the policy will not pay out any benefits from the accidental death rider, leaving only the base amount of $100,000.

Conclusion

In this case, the insurer will pay $100,000 because the death was due to a heart attack, which is not classified as an accident. The accidental death benefit rider does not apply here, meaning the insured's beneficiaries will receive only the standard policy amount. Understanding the distinction between natural and accidental causes is essential in determining insurance payouts.

An insured has a $100000 policy with an accidental death benefit rider. If he dies on his way to work due to a heart attack what will the insurer pay?

$100,000

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