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Chap 12-24
Section 24
11
Finance
Undergraduate 4
10/30/2011

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Cards

Term
a rider the doubles the face amt of life insurance if death occurs as a result of an accident
Definition
accidental death benefit rider
Term
the accidental death benefit rider is also known as
Definition
double indemnity
Term
the cost of the accidental death benefit rider is relatively
Definition
low
Term
before a double indemnity benefit is paid, the death must be caused directly, and apart from any other cause, by
Definition
accidental bodily injury
Term
before a double indemnity benefit is paid, the death must occur w/in 90 of
Definition
the accident
Term
the purpose of this requirement in the accidental death benefit rider is to establish the fact that accidental bodily injury is the proximate cause of death
Definition
death must be w/in 90 days of accident
Term
before the double indemnity benefit is paid, accidental death must occur before some specified
Definition
age
Term
w/ the accidental death benefit rider, the coverage usually terminates on the policy anniversary date just after the insured reaches
Definition
a certain age
Term
a major objection to the accidental death benefit rider is that what is not doubled or tripled if the death results from an accident?
Definition
the economic value of a human life
Term
b/c most persons are what, the premiums for the double indemnity rider could be better used to purchase an additional amount of life insurance, which would cover both accidental death and death from disease?
Definition
underinsured
Term
a major objection to the accidental death benefit rider is that a person may be deceived and believe that he or she has more insurance than is
Definition
actually the case
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