Double indemnity is a clause or provision in a life insurance or accident policy whereby the company agrees to pay the stated multiple (i.e. double) of the face amount in the contract in cases of death caused by accidental means. This includes murder by a person other than, and not in collusion with, the beneficiary of the insurance policy, and most accidental deaths. It excludes suicide, and deaths caused by the insured person's own gross negligence, as well as natural causes, such as cancer or heart disease.
In 2006, 5.01% of all deaths in the United States were declared accidental. For this reason, double-indemnity clauses are usually relatively cheap and often aggressively marketed, especially to people over 45. Children and people in dangerous jobs, such as heavy construction, are the exceptions.
Famous quotes containing the word double:
“Today, San Francisco has experienced a double tragedy of incredible proportions. As acting mayor, I order an immediate state of mourning in our city. The city and county of San Francisco must and will pull itself together at this time. We will carry on as best as we possibly can.... I think we all have to share the same sense of shame and the same sense of outrage.”
—Dianne Feinstein (b. 1933)