Business, Legal & Accounting Glossary
An accidental death benefit is a payment paid to a beneficiary after an accidental death. The amount is paid by an insurance company if the insured dies from natural causes. Under most conditions, the accidental death benefit extends up to a year after the initial accident if the beneficiary can prove the death was caused by the accident.
Insurers are notorious for attempting to deny accidental death policies by looking for exclusions. For example, some accidental death claims have been denied for automobile accidents if the insurer can find any evidence of negligent or intoxicated driving on the part of the deceased which they will use to deny coverage. Many claimants find their claim denied but are able to get legal representation to assist them to prepare their appeal to make sure they get the insurance benefits they are entitled to receive.
An accidental death benefit is an amount paid to a beneficiary or beneficiaries named in an insurance policy if and only if the insured dies in an accident, or as a result of injuries suffered in an accident. Often, the accidental death benefit is purchased as a rider on the policy. A person might choose to include an accidental death benefit clause or rider if their occupation puts them a higher risk of having an accident. Jobs that require a lot of driving, heavy lifting, or working amidst moving vehicles or with heavy machinery are possible work situations that would motivate the purchase of an accidental death benefit rider. Depending on the policy, beneficiaries are eligible to collect the accidental death benefit up to a year after an accident, if the victim survives for a time afterwards. Policies with an accidental death benefit clause may have a provision to pay benefits to the insured if the insured is dismembered but survives an accident. Death from noncommercial aviation or other hazardous hobbies, illegal activities, and war are often excluded from accidental death benefit coverage. Typically, accidental death benefit riders expire once the insured reaches a certain age. The maximum age varies with policy and will be included in the accidental death benefit clause.
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This glossary post was last updated: 30th March, 2020 | 0 Views.