What Is Double Indemnity In Insurance? – Meaning & Needs

published on: September 4, 2023 last updated on: September 20, 2023
Double Indemnity

Regarding life insurance policy provisions, we have different sets of financial protection and benefits in mind. Double indemnity, being a very reliable policy provision, allows beneficiaries peace of mind through some additional sum of policy benefits should any accident occur. 

As one of the most common life insurance policies, double indemnity adds an extra layer of financial benefits to their employees. The motive is to keep the loved one of the insured safe and secure if they were to lose their life due to an accident. More precisely, the double indemnity in insurance provides twice the amount expected through policy benefits in case any tragic event were to occur.

To simplify the concept, one can put double indemnity this way – it is like an extra safety precaution that the insurance company provides to the insurer. For example, if they are buying a smartphone with a specific warranty period, they can add extra years or months to that warranty period just to be on the safe side.

Having a double indemnity insurance policy ensures the insurer’s family and loved ones extra benefits should any tragedy were to occur to the insurer. 

Why Must You Need An Double Indemnity Insurance? 

Why Must You Need An Double Indemnity Insurance

An insurer can see it as an extra precaution or expect the unexpected. We never know what will happen to our lives. An accidental death can devastate a family completely. When the sole breadwinner of a family goes through such tragic death, the family is left with both emotional and financial disaster. 

Since accidental deaths are sudden and can often be a heavy burden on families, the insurer can opt for it to keep their family safe at all costs. It helps the family of the insurer to easily carry the financial burden post their deaths. That is why the policy benefits assure an additional fund should such a calamity were to devastate a family.

Read More: What Is Reinsurance? : Types, Functions, How It Works, Advantages & More

What Is Covered Under Double Indemnity Policy? 

What Is Covered Under Double Indemnity Policy

Of course, the insurer can claim the benefits mentioned under double indemnity. However, as per multiple cases of insurance claims under false accidental death claims, they have become more cautious.  

It is also common to not get some of these companies to cooperate. Some examples would be – unwilling to pay because the company claims a car accident to be an act of suicide. That is why it is necessary to know what kind of accidents are covered under a Double Indemnity provision –

  • Slip and fall accidents.
  • Car accidents.
  • Choking.
  • Murder.
  • Accidental drowning.
  • Boat accidents.

However, these are some of the most common examples of accidental deaths covered under a double indemnity clause. However, there are many such options that your insurance policy might entail. That is why checking the policy and reading its terms and conditions is wise.

Also, usually, the insurance company you are taking the policy form might not question the actual reason for the death. However, it is possible for them to exclude specific reasons for death. Some common examples of the same would include the following –

  • Suicide
  • Chronic disability/ illness
  • Heart disease
  • Cancer
  • Negligence of the insured
  • Murder was conspired or caused by one of the beneficiaries. 

Also, if there is no certain evidence proving the cause of the insurer’s death as accidental, the company does not need to pay the claim. On the other hand, if evidence surface suggesting the cause of the death is accidental in nature, then the company requires to pay the insurer’s beneficiaries for the claim. 

Things To Consider When Opting For Insurance With Double Indemnity

Given the family benefits during a traffic event, it is normal for many insurers to consider an insurance policy with a double indemnity. Here are some of the things one must consider before considering taking an insurance plan with double indemnity. 

Coverage Scope

Firstly, the insurer needs to understand different circumstances under which the double indemnity provision is applicable. Usually, this provision gets activated upon the accidental death of the insurer. 

However, the policy’s terms and conditions should outline what constitutes an accident. It should also include other different exclusions. You must ensure that you have the gist of these details before you purchase any of these policies. 


When an insurer opts for a double indemnity, they opt for an additional financial benefit should any tragic accidental death happen to them. However, this also calls for additional premium liabilities. A higher return always requires a higher amount in payment. The insurers must consider the cost of such provisions before considering them. 

It is wise to compare the additional costs with the additional benefits the insurance benefit returns. It should allow them to judge whether the plan is suitable for them or not. 

Risk Assessment

It is wise to evaluate the chance of the insurer’s accidental death and the financial burdens it can put on their family. Indeed it is impossible to foresee one’s cause of death. However, it is possible to assess the likelihood of someone’s death according to their lifestyle, occupation, etc. 

Some professionals have to work in a hazardous environment that puts their life at risk. Having double indemnity life insurance can help them secure their family finances. 

Compare Different Policies

Review different life insurance policies with double indemnity before you opt for one. Once you have decided to get one of these policies, you need to compare and review the different options at hand. You can take different parameters, such as coverage, and consider prices and extra benefits before choosing a policy.

Read More: Who Is A Underwriter? Understanding The Underwriting Process

What To Do If The Insurance Company Denies Double Indemnity Claim?

It is a common case nowadays for insurance companies to be unwilling to pay for accidental death claims. Such cases occur even in the case of well-documented accidental car deaths

But there are options for the beneficiaries to dispute the denial of a double indemnity claim. It is common for your policy to explain the process with the help of an experienced lawyer. 

If you are one of the beneficiaries of an insurer with a double indemnity clause, then you have the right to dispute a denial. Usually, it involves providing further evidence of the insurer’s accidental death to prove the incident and claim the benefits. 

It is possible to resolve the matter outside the court. But if the case is becoming complex, you must seek help from an expert wrongful death attorney and understand your rights.

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Shahnawaz Alam

Shahnawaz is a passionate and professional Content writer. He loves to read, write, draw and share his knowledge in different niches like Technology, Cryptocurrency, Travel,Social Media, Social Media Marketing, and Healthcare.

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