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A
It provides a death benefit only if the insured dies from an accident
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B
It provides an additional death benefit (often equal to the base face amount, creating 'double indemnity') if the insured dies as the result of a covered accident — the total payout is the base death benefit plus the ADB amount
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C
It reduces the base death benefit in exchange for accident coverage
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D
It covers medical expenses from accidents only, not the death benefit
Why this is the answer
ACCIDENTAL DEATH BENEFIT (ADB) RIDER — also called 'double indemnity' — pays an additional death benefit on top of the base policy face amount if the insured dies as a result of a covered accident. TYPICAL STRUCTURE: ADB rider amount = base face amount; so if the base policy is $250,000 and the insured dies in a covered accident, the total payout is $500,000 (base + ADB). DEFINITION OF ACCIDENTAL DEATH (per the policy): Must be accidental (not intentional); must be death from bodily injury (external, violent cause); must occur within a specified period of the accident (typically 90 days); EXCLUSIONS from ADB coverage (common): Death while intoxicated; death from drug use; aviation (some policies exclude non-commercial flight); hazardous occupations or hobbies; illness, disease, or medical condition (even if triggered by an accident); self-inflicted injuries; war or military service; AGE LIMITATIONS: ADB riders typically terminate at age 65 or 70 — the rider is based on actuarial mortality for accidents, which decreases in relative terms for older individuals; PREMIUM: ADB riders are inexpensive additions to base policies — accidental death probability is low for most insured populations; SUITABLE FOR: Working-age adults in moderate-risk occupations; clients who can't afford large base policies but want extra coverage for the accident scenario; NOT a substitute for adequate base coverage — natural death from illness is far more likely.
Source: Life Insurance License Exam, Accidental Death Benefit Rider