The Double Indemnity Provision in a Life Insurance Policy.
Key Takeaways
- Double indemnity clause doubles life insurance death benefit when the insured dies from accidental causes.
- Beneficiary receives twice the standard payout when death qualifies as an accident.
- Death must not result from natural causes or suicide to qualify for double indemnity.
- Claims typically must be filed within 365 days of the accident causing death.
- Insurers investigate the death and require documentation before approving the increased benefit.
The term double indemnity refers to a clause that is commonly included in accident and life insurance policies. Double indemnity is a type of life insurance that requires the insurance company to pay out up to double the value of the policy under the circumstances that the policyholder’s death is due to accidental causes.
This is meant to help financially protect families who are left dealing with the sudden, accidental death of a loved one.
What is a double Indemnity?
The double indemnity provision in a life insurance policy doubles the death benefit if the insured person dies in an accident. This means the beneficiary receives twice the standard payout.
However, the death must be accidental and not due to natural causes, suicide, or other exclusions. Insurance companies typically investigate the circumstances of death to verify eligibility for the increased benefit.
What Events Qualify as an Accidental Death?
Insurance companies have strict guidelines on what events qualify as accidental death. Often, these will include acts of violence or preventable accidents caused by another person’s negligence. Common qualifying events include:
- Slip and fall accidents
- Drowning
- Choking
- Car accidents
- Accidents at the workplace
- Medical malpractice
- Murder or homicide
- Exposure to toxic materials
- Defective machinery or products
The death of a loved one is devastating, and even more so when it occurs because of someone else’s negligence or wrongful actions.
Reasons for Denying a Double Indemnity Claim
There are many different reasons that an insurance company might decide to deny a double indemnity claim. Some of the different causes of death that typically negate this insurance claim include:
- A pre-existing medical condition
- Deaths caused by negligence
- A drug overdose (an exception would be if this was a prescribed medication and the doctor prescribed the dose incorrectly)
- Suicide
- Extreme activities like skydiving
- A murder that was committed by the beneficiary
Paying out double the amount on a claim is something that the insurance companies want to avoid maximizing the payout, and their adjusters understand this as well. For this reason, they may attempt to argue that a death was not accidental in order to deny the double indemnity clause of your policy.
The Claims Process
Although it may seem as if you have plenty of time to initiate the insurance claim process after the death of a loved one, insurance companies will typically cover claims that are submitted within 365 days from the accident causing the death. They will request specific documentation to support the claim, including but not limited to:
- The death certificate
- Police report
- Statements from any eyewitnesses
- Medical records
- Toxicology reports
- Coroner’s report
Insurance companies will work to reduce the payout in order to maintain their own profits. When it comes to a double indemnity policy, many insurance companies count on making profits from them because so many of these claims are actually approved. For this reason, it is advisable to work with a skilled personal injury attorney who can help show liability and advocate for your double insurance indemnity claim.
Benjamin P. Cloward
In 2016, at the age of 37, Benjamin P. Cloward became the youngest lawyer in the history of the State of Nevada to be awarded the prestigious “Trial Lawyer of the Year” by the Nevada Justice Association. That same year, he became the youngest member of the Nevada, Las Vegas Chapter of ABOTA (American Board of Trial Advocates), and at the time was also the youngest person in the State of Nevada to be Board Certified as a Personal Injury Specialist.
Practice areas: personal injury, car accidents, truck accidents, wrongful death, Greyhound bus accidents, and walk-in tub accidents.
Location: Las Vegas, NV
