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AmPmInsure Community Debated over the importance of Accidental Death Benefit

Accidental death benefit(ADB) is also known as double indemnity plan, i.e. ADB would pay double the death amount if the insured died in an accident. Now, the ADB benefit makes sense to some since they are receiving double their value of life insurance without increasing their premium amount much. But we have experienced seasoned agents debating over the usefulness of accidental death benefit. In fact their opinion was really torn on this issue, when a group would support the idea of adding accidental death benefit to avoid unwelcome situations; the other group thinks its really redundant. Recently we had a great debate over the same topic in the AmPmInsure community. You can read it in details here.

However, if you decide to add this benefit to your life policy make sure that you read the fine prints. The ADB rider would include several conditions and exclusions about paying the benefits.

Most important that you read the definition of accident as described by the insurer. It may so happen that one incident may not meet the policy definition and therefore gets disqualified for the benefits.

Some policies would also describe time limit such as- the policy holder should die within 90 days after the accident in order to receive the double benefit.