Texas Life Agent Practice Exam

What is the primary purpose of a life insurance accidental death benefit rider?

1. To double the death benefit if the insured dies in an accident

2. To pay for funeral expenses

3. To cover living expenses during disability

4. To provide cash value accumulation

The correct answer is: To double the death benefit if the insured dies in an accident

The primary purpose of a life insurance accidental death benefit rider is to provide an additional payout, often doubling the standard death benefit, if the insured passes away due to an accident. This rider enhances the coverage of a basic life insurance policy by addressing the specific risk associated with accidental death, which is often considered more unlikely than death from natural causes. By including this rider, policyholders gain peace of mind knowing that their beneficiaries would receive a larger sum in the unfortunate event of an accidental death. The other options outlined do not align with the function of this rider. While funeral expenses may need to be covered in any death scenario, this is not the specific aim of the accidental death benefit rider. The rider also doesn’t provide support during a disability or facilitate cash value accumulation, as these functions are characteristic of different types of insurance policies or riders.