An accidental death benefit (ADB) rider, sometimes called double indemnity, is an optional addition to a life insurance policy that pays an additional death benefit if the insured dies as a result of an accident. The additional benefit is typically equal to the base policy's face amount, effectively doubling the death benefit in the event of accidental death. Some policies offer a partial additional benefit for accidental dismemberment (loss of limbs, sight, or hearing).
Accidental death is generally defined as death caused by an external, violent, and unexpected event — such as a car accident, fall, drowning, or workplace accident. The death must occur within a specified period after the accident (typically 90 to 365 days). Deaths caused by illness, disease, suicide, drug overdose, or participation in illegal activity are not covered by the ADB rider, even if they occur suddenly or unexpectedly.
The cost of an ADB rider is typically modest because accidental deaths represent a small percentage of all deaths (approximately 6% in the United States). However, this also means the rider is unlikely to pay out, and some financial professionals question whether the additional cost provides meaningful value compared to simply purchasing a higher base death benefit that covers all causes of death.
When evaluating an ADB rider, consider whether your overall coverage amount is sufficient for your family's needs regardless of the cause of death. If you determine that your base coverage amount is adequate, the ADB rider provides additional protection in a specific scenario. If your base coverage is insufficient, it may be more effective to increase the base death benefit rather than add an ADB rider.