Question

Describe double indemnity?(1 point)
Responses

the policyholder is paying a fixed premium for coverage on a loan that has a decreasing payout
the policyholder is paying a fixed premium for coverage on a loan that has a decreasing payout

the policyholder buys gap insurance and is paid out from the base auto insurance and the gap insurance for totaling their car
the policyholder buys gap insurance and is paid out from the base auto insurance and the gap insurance for totaling their car

a life insurance rider that may result in beneficiaries receiving double the insured amount in case of death or severe injury
a life insurance rider that may result in beneficiaries receiving double the insured amount in case of death or severe injury

policyholder has both term life insurance and mortgage protection life insurance
policyholder has both term life insurance and mortgage protection life insurance

Answer 1

Correct answer: "a life insurance rider that may result in beneficiaries receiving double the insured amount in case of death or severe injury."

Explanation: Double indemnity (often an accidental death benefit or AD&D rider) pays an additional benefit—commonly doubling the policy face amount—if the insured dies (or suffers specified severe injuries) as the result of an accident, subject to policy exclusions.