‘Double indemnity’ is a provision used in life insurance that indicates that the company will issue a death benefit worth double the face value if you pass away due to an accident. These life insurance benefits may also be combined with accidental injury riders that provide a financial benefit if you become seriously injured as defined in the insurance policy and are unable to work.

If you are considering a double indemnity benefit with your insurance policy, you should clarify the exact scenarios that will result in a double-value death benefit as these may include specific circumstances outside the norm. Some life insurance applicants may be refused double indemnity coverage if they are more likely to experience an accident, usually because they work in a high-risk setting.

Double indemnity is a provision or clause that can be added to a life insurance policy. Insurance policyholders might opt for double indemnity because this provision will double the death benefit paid to their nominated beneficiary if they die suddenly due to an unforeseen covered accident.

In most cases, the value of double indemnity insurance coverage is just that–double the death benefit that would be paid in any other circumstance. Most insurance companies have exacting conditions for these benefits, excluding claims for fatalities linked to natural causes or medical conditions. Some insurers may also exclude insurance claims where the death occurred due to suicide, negligence, or high-risk activities.

However, double indemnity policy provisions may include causes of death that could potentially be linked to a wrongful death suit. These might consist of a fatal vehicular car accident caused by a third party, homicide, or medical malpractice that results in the death of the insured person.

It is worth noting that accidental deaths usually included within double indemnity insurance coverage are generally uncommon and account for a small proportion of fatalities. The positive is that adding a double indemnity provision to a life insurance policy is relatively simple, provided the insured person is not considered high-risk, such as an individual employed by the military.

Each insurance company will define an accidental death that could result in the death benefit being doubled. While these will differ between insurance products and companies, the following scenarios will often mean a double indemnity benefit could be paid:

• Automotive accidents
• Accidental falls or drowning
• Homicide, dismemberment or physical attacks that result in death

Insurance companies may have limitations and exclusions; For example, not every vehicular accident may be considered an accidental death. Before making any decisions about insurance coverage, it is essential to review the policy terms and conditions.

Just as circumstances around the death of the insured person might qualify the beneficiary for a double death benefit, there are varied exclusions that may appear in double indemnity life coverage provisions, including:

• Homicide perpetrated by the insured's policy beneficiary
• Accidents deemed to be due to negligence on the part of the insured person
• Fatalities where the insured person was intoxicated
• Death by suicide and natural causes

If an insurance company denies a claim for a double indemnity payment, the policy beneficiary can contest this. 

Double indemnity life insurance clauses may offer additional financial support for your loved ones by providing double the standard death benefit with your policy. These insurance benefits might help to sustain your family's living standards if you were to pass away suddenly due to an accident.

If you are considering purchasing a double indemnity clause or adding this to your life coverage as a policy rider, you should carefully review the life insurance exclusions and conditions. For example, a long-term illness or terminal condition may not qualify as an accidental death and thus a double indemnity benefit would not be paid.

Because the circumstances that would mean a fatality would trigger a valid double indemnity claim are often sudden and unexpected, the larger benefit can help the insured's beneficiaries cope with a potentially dramatic change in income, with coverage to assist with the practical and financial aspects of the sudden loss of a loved one.

Many families choose to add double indemnity to their life insurance coverage for the assurance that, if either parent were fatally injured or passed away suddenly, their insurance would sustain the family's living standards and could be used for medical and funeral expenses and cover educational and accommodation costs. Likewise, the benefits of adding life insurance riders to protect against unforeseen and unlikely scenarios, like a workplace dismemberment or loss of a limb, act as a safety cushion that may never be used–but can make a substantial difference if needed.

As with any type of life insurance product, double indemnity may not be suitable for every individual, nor will it provide a double-value payout unless a fatality falls within a defined set of circumstances. Claiming double indemnity insurance benefits can be complex, and the policy beneficiary may be required to submit proof that the fatality was accidental and did not fall within any of the excluded categories.

Documentation is a key aspect of making a successful double indemnity claim for the loss. Claimants may need to collect paperwork from emergency responders, local authorities, and witnesses to gather sufficient evidence that a death falls within the scope of a double indemnity policy rider.

It may also take time for the life insurance provider to validate the double indemnity claim. Once this is approved, many companies will pay the double indemnity value promptly.

What Is the Benefit of Adding a Double Indemnity Coverage to a Life Insurance Policy?

The primary advantage of double indemnity life insurance protection is that if you were to pass away due to a no-fault accident, such as a traffic collision, the insurer may double the death benefit from your loss. This life insurance value would remain payable to your named policy beneficiary, with the higher benefits available to use as they wish.

Because the fatalities claimable under a double indemnity clause are rare, this additional life insurance rider tends to be inexpensive and can be added to most types of insurance. Depending on your requirements, circumstances, and the value of your current insurance coverage, adding a double indemnity rider may be a low-cost way to extend the financial protections in place.

Are There Any Standard Exclusions Within Double Indemnity Life Coverage?

Insurance carriers often include a detailed life of exclusions in their policies, which may include circumstances such as fatal overdoses, suicide, or deaths that occur due to criminal behavior.

Most double indemnity life insurance policy riders will also have specific exclusions, such as fatalities linked to extreme sports like bungee jumping. It is important to clarify whether inclusions and exclusions meet your requirements, as these are often highlighted within the policy terms rather than via an insurance ad or coverage brochure.

How Would My Life Insurance Beneficiaries Claim Double Indemnity?

Depending on the circumstances around the death of the insured person, the life insurance beneficiary would typically need to provide documentation to prove that the death was accidental and unforeseen, including autopsy results and police reports.

Most life insurance products with a double indemnity rider will provide a double payout as long as the claimant files within a maximum period.

It is common for the insurance provider to require paperwork in addition to the death certificate, and they will likely take a few weeks to verify whether the claim is covered by the terms of your life insurance.

Does Double Indemnity Life Coverage Apply to Workplace Fatalities at a Business Premise?

Normally, yes–double indemnity life insurance will apply when a named person on the insurance policy dies, excluding deaths linked to negligence. Most products will cover workplace accidents, including deaths caused by machinery defects or slips and falls.

However, as we mentioned earlier, some scenarios–such as working within a high-risk occupation–may mean that either this addition to your life insurance is unavailable or that double indemnity does not apply if the circumstances fall outside of the terms of your policy.