Double Indemnity provision in a life insurance policy

Double Indemnity is a provision in life insurance policies that allows the beneficiary to receive twice the amount of their inheritance if the insured person dies within 12 months of the policy’s purchase.

In life insurance, there are various benefits and provisions that can be included or excluded from plans. Among these provisions is what is commonly known as double indemnity. Here, when an insured dies during a given period after purchasing a life insurance policy, rather than just recouping an agreed amount based on how much was paid for the plan, double indemnity provides for two times that amount to be paid out to beneficiaries by those who purchased it.

What is Double Indemnity?

Double indemnity is a provision that is included in some life insurance policies. As the name implies, this provision allows beneficiaries to receive twice the amount they are entitled to if an insured person dies within a year of purchasing their plan. The death must be accidental in nature, however, and cannot be due to suicide. This means that those who purchase plans with this indemnity could potentially receive much more if they die soon after buying the policy than they may have otherwise received without this special provision in place.

For example, if you purchased a $40,000 life insurance policy but died shortly after buying it due to an accident, your beneficiary would receive $80,000 instead of just $40,000.

This provision is generally available in all forms of life insurance, including annuities and whole life. It can be included or excluded from certain policies, however, based on the provider’s discretion.

How this Works

Typically, when a person purchases a life insurance policy and pays for it with a down payment and premium payments over the course of several years, there are conditions that are placed on these policies. These conditions include a term that defines how much will be paid to the beneficiary without double indemnity being triggered, as well as provisions that determine what happens if an insured person dies early.

Double indemnity, on the other hand, will only come into play if the insured dies within one year of purchasing the plan. This means that there would be no benefit – and no extra payout – if an insured person died within this time period. If they die after this period passes, then this indemnity kicks in and gives them more money than they would have normally received.

If an insured person dies outside of this time frame. Then their beneficiaries receive whatever amount was agree upon. When the life insurance policy was purchase.

However, there are a few instances where this indemnity could still be paid out even if a policy’s conditions aren’t met.

Are all insurance policies under this?

No. Not all life insurance policies include double indemnity, and most will not pay out twice the amount of the policy if you die within one year of purchasing it. In fact, most will only pay out a maximum of triple indemnity–$125,000 instead of $80,000. Due to the higher expenses associate with insuring such a large amount. However, these types of policies more commonly found among people who are in their upper-middle class. And above rather than those who are struggling financially to make ends meet on a regular basis. Having said that, there are some plans that may offer this indemnity as an option instead of just triple indemnity.

Double Indemnity


There are several advantages to having double indemnity in your life insurance policy. The most obvious is that the beneficiary will receive a much higher payout from their loved ones if they die early. If the beneficiaries are expecting such a high amount. This could be enough to help them make ends meet without working a full-time job or relying on welfare payments.

Another benefit of this indemnity is that it can give the insured person some extra time with their family. This means that their beneficiaries won’t have to worry. About how they will support themselves if they suddenly pass away so soon after purchasing the plan.

All in all, having this indemnity attach to your life insurance policy can be a major asset. Especially if the beneficiary is expecting to receive a high amount of money.


With double indemnity comes some disadvantages as well. The biggest disadvantage is that beneficiaries may not have control. Over how much they receive when their loved ones die early. Without knowing whether or not they included this indemnity in their policy. A second disadvantage is that people purchase these types of policies. May have to pay extra premiums as part of the contract. Because of this provision if it is not include. In some cases, coverage with this indemnity may be exclude from certain insurance packages.

Another disadvantage of this is that it may not be available for every type of policy. This can be especially difficult for those who are looking to buy a certain type of life insurance. But want to add this indemnity to their plan without having to buy a different type.

Buying Life Insurance with this

The double indemnity should be the default option on all life insurance policies. Because if you die early, your family will need all the help they can get. That said, however, it isn’t always available as an option. If you want this to be include. Then you need to make sure. That your policy will pay out this extra money when you die. Consulting with a professional and finding out. If this possibility is at all possible can help you decide if this is right for you.

If it is, then double indemnity could be a major benefit. That could potentially save your family thousands of dollars over the course of your lifetime. If it isn’t, however, then there are still advantages to having a life insurance policy. With this provision attached to it.

Any benefits or disadvantages of having this should be taken into consideration. Before purchasing a life insurance policy. Especially if the plan has an unusually high payout for early deaths.

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