What is “Double Indemnity”?

Movie fans may recall the 1944 classic starring Fred MacMurray and Barbara Stanwyck entitled “Double Indemnity”. In the film, MacMurray gets involved with the sensuous Stanwyck, which turns into a plot to murder her husband. Insurance fraud is a key component in the plot, and provides the name for the movie itself. What however, is “double indemnity” when it comes to life insurance? Does your life insurance policy have a double indemnity provision?

Double indemnity is a clause in many life insurance policies that doubles the death benefit paid to a beneficiary should the insured’s death occur by accident. If for example, an insured has a $50,000 life insurance policy and they were to die in a car accident, the payout would be $100,000 under a double indemnity provision. Of course death would have to be proven as the result of a covered accident.

In the film, Stanwyck and MacMurray plot to kill her husband, making it look like an accident to maximize her payout. To make it worse, MacMurray is in the role of a life insurance representative. Don’t worry, we won’t spoil the ending here, but suffice to say, crime does not pay. .

Double indemnity is one the multiple benefits that may be included in a life insurance policy that can be taken for granted. Other provisions can include a waiver of premium benefit that covers premium payments should the insured become disabled and a loss of limbs benefit should the insured lose an arm or a leg while the policy is in force.

If you would like to know what “hidden benefits” your life insurance policy has, we invite you to contact us for a no-obligation life insurance review. Because we are independent agents, we are qualified to review life insurance policies from any company. If you like, we can even search out life insurance options to perhaps, improve coverage. Connect with us today for the peace of mind you need when it comes to your life insurance coverage. We look forward to assisting you.