What is an "accidental death benefit"?

An accidental death benefit refers specifically to a provision in life insurance policies that provides an additional payout to the beneficiaries if the insured dies as a result of an accident. This benefit is above and beyond the standard life insurance payout and is designed to offer extra financial support in cases deemed accidental.

This type of coverage is significant because it differentiates between deaths that result from natural causes or illnesses and those that occur due to unforeseeable accidents, underscoring the nature of risk that insurers are willing to cover. Accidental death is usually defined by the policy, and qualifying incidents may include events like car crashes, falls, or other unintended fatalities. Thus, the answer accurately reflects the purpose and characteristics of the accidental death benefit within the realm of insurance policies.