What is the definition of Accidental Death Benefit (ADB)?

The Accidental Death Benefit is a rider which will pay out an additional amount over and above the death benefit when the cause of death is an accident. This is why this benefit is also called double indemnity since the rider effectively doubles what the beneficiaries stand to receive in the event of the insured person's death.

However, there are some life insurance companies that provide an option to buy multiples of this benefit. This means that you can purchase twice or more times the face amount of the policy as your Accidental Death Benefit.

For example, John bought a life insurance policy of $30,000 plus twice the Accidental Death Benefit. That means that in the event that John dies because of an accident, his beneficiaries will receive $90,000 - $30,000 for the death benefit and $60,000 for the accidental death benefit.

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