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:
“In a symbol there is concealment and yet revelation: here therefore, by silence and by speech acting together, comes a double significance.... In the symbol proper, what we can call a symbol, there is ever, more or less distinctly and directly, some embodiment and revelation of the Infinite; the Infinite is made to blend itself with the Finite, to stand visible, and as it were, attainable there. By symbols, accordingly, is man guided and commanded, made happy, made wretched.”
—Thomas Carlyle (1795–1881)