The accidental death benefit is a provision or rider that is attached to a life insurance policy. It is typically paid in addition to the regular benefit that would be given if the insured had passed away from a natural cause. The accidental death benefit can be paid upon the death of the insured, or it can be paid after a certain period of time has passed. The payment may be made directly to the beneficiary or it may be paid through an annuity that has been purchased by the insurer for the beneficiary. In some cases, there will be a clause in the policy which states that if there are multiple beneficiaries, each person gets his or her own accidental death benefit. In such cases, it is customary for all beneficiaries to accept their share of this payout and then split it among the
The accidental death benefit is intended to compensate the beneficiary for the loss of life that was not intended by the policyholder. The policyholder may have made a mistake in filling out his or her policy, or he or she may have taken an action that would lead to his or her death.
The accidental death benefit does not change the amount of insurance coverage provided by the policy. It merely replaces the value of life insured against certain causes of death with an amount that compensates for those losses. For example, if a person had $100,000 worth of life insurance coverage with $50,000 worth of accidental death benefits built into his or her policy and he or she died from a heart attack, then his or her beneficiaries would receive $50,000 from the insurer as well as $50,000 from his or her own personal funds invested in insurance policies with other employers or financial institutions.
The accidental death benefit is intended to compensate the beneficiary for the loss of life that was not intended by the policyholder. The policyholder may have made a mistake in filling out his or her policy, or he or she may have taken an action that would lead to his or her death.
The accidental death benefit does not change the amount of insurance coverage provided by the policy. It merely replaces the value of life insured against certain causes of death with an amount that compensates for those losses. For example, if a person had $100,000 worth of life insurance coverage with $50,000 worth of accidental death benefits built into his or her policy and he or she died from a heart attack, then his or her beneficiaries would receive $50,000 from the insurer as well as $50,000 from his or her own personal funds invested in insurance policies with other employers or financial institutions.
