Double indemnity is an insurance policy provision that pays the beneficiary double the standard amount in some cases of accidental death. It is not applicable to homicide, suicide, or natural causes. The coverage is also known as an “accidental death benefit” and is usually offered as a supplement to life insurance. It requires a more expensive premium and has specific terms for each agency. Not all accidental deaths are covered, and there are limits on the time that can elapse between the accident and death. The provision is commonly associated with the 1944 film noir Double Indemnity.
Double indemnity is a clause or provision in an insurance policy in which the business pays the beneficiary approximately double the standard contract amount in some cases of accidental death. The double indemnity does not cover homicide or suicide or deaths from natural causes. In cases where the cause of death is unclear or suspected, the insurance company typically doesn’t pay out the money until enough evidence is gathered to indicate that the death was indeed an accident. Beneficiaries who feel they owe this money can sue the insurance company for breach of contract.
This insurance coverage is also known as an “accidental death benefit”. Despite its popular name of “double indemnity,” however, companies don’t necessarily offer exactly double the policy’s face value in the event of accidental death. It can be a different multiple of this value; specific terms are specific to each agency.
Double Indemnity is usually offered as a supplement that you can add to the life insurance you purchase. It usually requires a more expensive premium. Covering children and people in dangerous jobs is also more expensive. Some policies expire when the policyholder reaches a certain age, such as age 65 or 70, when injuries are thought to be more likely to occur. It is thanks to these provisions, and because the actual number of accidental deaths each year is quite low, that companies are able to finance the double benefit.
Not all accidental deaths are covered by double indemnity; most policies specifically exclude its coverage from instances where the covered person is held partially responsible, for example, by taking drugs or behaving recklessly. Also, deaths resulting from war or illegal activity are generally excluded. There are also limits on the time that can elapse between the accident and death. For example, the policyholder may need to die within 90 days of the injury for the double benefit to take effect.
This type of insurance coverage is commonly associated with the 1944 American film noir directed by Billy Wilder called Double Indemnity and based on a Raymond Chandler novel of the same name. The crime story is based on a New York woman who conspires with her lover to kill her husband after he takes out a double-indemnity life insurance policy.
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