The accidental death benefit rider is also known as

Rationale

Accidental death benefit rider is also known as double indemnity.

The accidental death benefit rider provides an additional benefit to the beneficiaries in the event that the insured dies due to an accident, effectively doubling the payout. This rider is commonly referred to as "double indemnity" because it typically pays out twice the face amount of the policy in such cases.

A (incontestability.) YOUR ANSWER

Incontestability refers to a clause in insurance policies that prevents the insurer from denying a claim based on misstatements in the application after a certain period, usually two years. This concept does not relate to the circumstances of death or additional benefits, making it an unrelated term in the context of accidental death benefits.

B (double indemnity.) CORRECT

This term specifically describes the accidental death benefit rider, which provides a payout that is double the policy's face value if the insured dies as a result of an accident. It directly correlates with the additional coverage that the rider offers, distinguishing it from standard life insurance payouts.

C (waiver of premium.) YOUR ANSWER

The waiver of premium is a provision that allows the policyholder to skip premium payments if they become disabled and unable to work. This benefit is focused on maintaining the policy during times of hardship rather than providing increased coverage in the event of accidental death.

D (guaranteed insurability.) YOUR ANSWER

Guaranteed insurability is a feature that allows policyholders to purchase additional insurance coverage at specified times without having to provide evidence of insurability. This option is unrelated to the benefits linked to accidental death and does not involve the doubling of payouts.

Conclusion

The accidental death benefit rider is synonymous with double indemnity, as it specifically enhances the life insurance policy by providing a substantial benefit in the event of accidental death. Other terms, such as incontestability, waiver of premium, and guaranteed insurability, pertain to different aspects of insurance policies and do not offer the same type of coverage or financial benefit related to accidents. Understanding these distinctions is vital for effective insurance planning and beneficiary management.

The accidental death benefit rider is also known as

Accidental death benefit rider is also known as double indemnity.

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