Do Life Insurance Policies Pay Double for Accidental Deaths?

Shawn Plummer

CEO, The Annuity Expert

Do Life Insurance Policies Pay Double for Accidental Deaths?

Not all life insurance policies pay double for accidental death. The payout depends on the specific terms of your policy. Generally, life insurance policies include a base benefit amount, say $100,000. If your policy has an accidental death benefit (ADB) rider, it can pay an additional amount in case of accidental death. The ADB amount can be equal to, less, or more than the base policy amount.

For instance, if you have a $100,000 base policy and a $200,000 accidental death benefit, the policy would pay double ($300,000 in total) in case of accidental death. Conversely, with a $100,000 base policy and a $50,000 ADB, the total payout would be $150,000, not double the base amount.

Understanding Your Policy

Base Policy Amount: The amount your beneficiaries receive upon death, regardless of cause.

Accidental Death Benefit (ADB): An additional amount paid only in the event of accidental death. It’s usually an optional rider.

Total Payout: The sum of the base policy and ADB amounts. This varies based on the policy terms.

Example Scenarios

  1. $100,000 Base Policy + $200,000 ADB: Total payout is $300,000 in case of accidental death.
  2. $100,000 Base Policy + $50,000 ADB: Total payout is $150,000 in case of accidental death.

Conclusion

The payout for accidental death depends on the specific terms of your life insurance policy and the accidental death benefit amount. Understanding these details is crucial to know what your beneficiaries can expect. Contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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