ACCIDENTAL DEATH CLAUSE Meaning and
Definition
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The accidental death clause is a provision commonly found in insurance policies that outlines specific conditions under which benefits will be paid out in the event of an accidental death. This clause defines accidental death as an unexpected and unforeseen event that occurs purely by chance, excluding deaths resulting from illness, suicide, or any other non-accidental causes.
Under this clause, the policyholder or their designated beneficiary is entitled to a specified sum of money or death benefits if the insured individual dies due to a covered accident. The accidental death clause serves as a supplementary coverage apart from the life insurance coverage, providing additional financial support to the policyholder's family or beneficiaries in the event of accidental death.
To determine the applicability of the accidental death clause, several factors are taken into consideration, including the cause, time, and place of death. The policy may also specify certain exclusions, such as deaths caused by participating in hazardous activities or illegal acts. Individuals covered by such policies are advised to thoroughly review the terms and conditions, as well as any restrictions or limitations associated with the accidental death clause, to ensure they fully understand the coverage and any conditions that may affect its validity.
Overall, the accidental death clause provides a layer of protection for policyholders and their beneficiaries, granting financial support in the event of an unexpected and accidental loss of life.
