Accidental Death/Dismemberment
Double or triple indemnity
- an optional rider for an additional premium
- death must occur with-in 90 days of the accident
- death can not be the result of a mental of physical condition
- rider drops off at age 60 or 65
- pays a % for dismemberment of hands, arms, feet, legs, eyes, NOT fingers or toes
MR. WATSON: Let's say you have a half-a-million-dollar policy with double indemnity. If you die accidentally, the company will pay twice the face amount, or double. If you die accidentally, you might have triple indemnity. Accidental death is strictly defined. It does not cover deaths resulting directly or indirectly due to a physical ailment. And you have to die within 90 days of the accident. It's called an accidental death benefit rider .
MR. WATSON: Death must be an external, violent way of dying.
MR. WATSON: I want to tell y'all a story. I am driving around a mountain. I have a $500,000 policy with double indemnity. And my left arm goes numb. My chest is heavy. I'm having a heart attack. In my angst, I hang a left. Wrong move, like Wiley Coyote off the cliff. How much will it pay?
WOMAN: $500,000.
MAN: Depends on when you die, doesn't it?
MR. WATSON: Son, I just told you a beautiful story. Will it pay a $500,000, or will it pay a $1,000,000 because of the double indemnity?
MAN: It's a million because it's external.
MR. WATSON: It's only going to pay a half a million dollars. Why? Because you died indirectly due to a physical ailment. What caused you to go off the cliff? A heart attack. Who is sitting there saying, well, how would they know?
(Hands up.)
MR. WATSON: Watch out, I told you how it happened. Does that make sense? You ain't Dick Tracy.
(Laughter.)
MR. WATSON: Guys, answer the question with the information they give you.
MR. WATSON: Why would it pay half a million? Because it was an internal problem that caused it. The accident resulted indirectly due to a physical ailment. Does that make sense?
ALL: Yes.
MR. WATSON: Most companies will not offer this to anyone over age 55 or 60 and the rider usually drops off at age 60 or 65. When the rider drops off, the premium is adjusted accordingly.
MR. WATSON: Let me tell you a spooky story. Let's say Lebanon and Jersey are married.
MR. WATSON: Jersey owns a half-a-million-dollar policy on Lebanon, with double indemnity. He's been run over by a bus, laying there in a coma. It's Day 89, and she's crying like a baby. Why is she crying? She's afraid he might live one more day.
MR. WATSON: You're a goner. You agree? You have to die within 90 days of the accident. Double indemnity. Good stuff. Very expensive. Y'all got it?
MR. WATSON: This is a very good reason for a client to discuss "end of life" decisions with their attorney, financial advisor and health care provider in advance of these situations. We are explaining, with humor, some very important information that can be extremely serious as well as stressful when they happen.
Some of these policies have a dismemberment feature that pays half the amount should you lose an eye, arm, or leg.