Double indemnity

Double indemnity is also called accidental death. Essentially, this rider pays your survivors twice the amount of the policy if you die an accidental death, as opposed to death by disease or illness. Some policies offer a triple death benefit if the accident occurs while you’re a passenger on a common carrier, such as a commercial airline, train, or bus.

Accidental death riders sometimes raise questions about whether a death is a result of an accident or an illness or disease. Most policies specify that in order to be covered under this rider, the insured must die within 90 days of an accident, and the cause of death must be directly related to the accident — and that may be hard to prove.

Although accidental death/double indemnity riders are quite cheap, for most people they’re not really good deals. After all, you base how much you insure yourself for on your survivors’ needs, and an accidental death won’t increase the amount they need. (In fact, they probably need less than if you die from an illness, because illness often brings additional and prolonged costs.)

If this coverage appeals to you, you probably feel under insured. Instead, consider raising your amount of coverage.