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:
“Actually being married seemed so crowded with unspoken rules and odd secrets and unfathomable responsibilities that it had no more occurred to her to imagine being married herself than it had to imagine driving a motorcycle or having a job. She had, however, thought about being a bride, which had more to do with being the center of attention and looking inexplicably, temporarily beautiful than it did with sharing a double bed with someone with hairy legs and a drawer full of boxer shorts.”
—Anna Quindlen (b. 1952)