Alternate name: double indemnity benefit
How an Accidental Death Benefit Works
If you die because of an accident that occurs when you’re performing work-related duties, your designated beneficiary will receive an accidental death benefit payout in addition to your life insurance benefit. The on-the-job accident must not be a result of the insured’s willful negligence. Because the accidental benefit payout is made to your last designated beneficiary, it’s important that you constantly review your retirement information to ascertain whether your beneficiary designations reflect your current desires. Although you may designate any person, trust, or organization to receive your death benefit, it will be paid out in this order:
Your surviving spouse, known as the primary beneficiary Your surviving children until they attain 25 years of age A dependent parent or parents Any other individual who qualifies as a dependent
You also can designate a contingent beneficiary to receive your death benefit if all your primary beneficiaries die before you. Multiple beneficiaries will share the inheritance equally unless you indicate the specific percentages to be paid. If no beneficiaries exist, the death benefit will be paid to the executors of your will.
How To Get Accidental Death Benefits
An injured or deceased insured person may not have the chance to file a job-related accident report. Given this, their beneficiary must file for accidental death benefits within two years of the event that caused the insured’s death or benefits will be denied. If you file for accidental death benefits more than two years after the occurrence of the job-related accident, you still may receive benefits under these circumstances:
A notice was filed with the retirement board within 90 days of the accident. There is a record of workers’ compensation payments for the injury that caused the death. There is a record on file in the insured’s department for such an injury sustained.
Accidental Death Benefit vs. Life Insurance Benefit
Although accidental-death and life insurance benefits are payable to your beneficiaries when you die, your death doesn’t necessarily guarantee a payout. While standard life insurance benefits are paid to your beneficiaries when you die, accidental death benefits are paid out only when the insured dies due to a covered accident.
