Question

An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?

Answer 1

Answer: Beneficiary settlement = $200 000

Explanation:

The insurance policy offers double indemnity for accidental deaths. The insured died from injuries sustained in an auto Accident. The Policy will pay double the Face Value amount of $100 000. His Beneficiary will receive $200 000 as a settlement