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What is it called when a life insurance policy pays a multiple of the coverage amount when certain types of accidents occur?

1) Premium
2) Annuitization
3) Waiver of Premium
4) Accidental Death Benefit

User Ilgaar
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Final answer:

The correct answer is 4) Accidental Death Benefit. An accidental death benefit is a feature of a life insurance policy that provides an additional payout if the insured person dies as a result of a covered accident.

Step-by-step explanation:

The correct answer to your question is 4) Accidental Death Benefit.

An accidental death benefit is a feature of a life insurance policy that provides an additional payout if the insured person dies as a result of a covered accident. This benefit usually pays out a multiple of the coverage amount, typically two times or more.

For example, if a policyholder has a $100,000 life insurance policy with a 2x accidental death benefit, their beneficiary would receive $200,000 if the policyholder dies due to a covered accident.

User Rush Frisby
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