Double indemnity

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This article is about the life insurance clause. For the 1944 film noir, see Double Indemnity (film).

Double indemnity is a clause or provision in a life insurance or accident policy whereby the company agrees to pay twice the face of the contract in cases of accidental death. An accidental death is a death that is neither intentionally caused by a human being, such as homicide, nor foreseeable, such as cancer.

In 2004, 4.67% of all deaths in the United States were declared accidental.[1] For this reason, double-indemnity clauses are usually relatively cheap and often aggressively marketed, especially to people over 45. Children and people in dangerous jobs, such as heavy construction, are the exceptions.[2]

[edit] References

  1. ^ Centers for Disease Control and Prevention (November 2006). "Final Deaths 2004". Press release. Retrieved on 2006-12-30.
  2. ^ Basics of Accidental Death & Dismemberment Insurance. insurance.com. Retrieved on 2006-12-30.