Business Glossary

in a life insurance policy, benefit in addition to the death benefit paid to the beneficiary, should death occur due to an accident. In double indemnity, twice the face value of the policy will be paid to the beneficiary; in triple indemnity, three times the face value is payable. Accidental death caused by war, aviation except as a passenger on a regularly scheduled airline, and illegal activities is generally excluded. Time and age limits are usually applicable, as for example, the insured must die within 90 days of the accident and be age 60 or less.

endorsements to life insurance policies that provide additional benefits or limit an insurance company's liability for payment of benefits under certain conditions. These include:

1. Waiver of Premium for Disability. An insured with total disability that lasts for a specified period no longer has to pay premiums for the duration of the disability. In effect, the company pays the premiums.
2. Accidental Death Benefit.
3. guaranteed insurability.
4. Cost-Of-Living Adjustment (COLA).
5. Other Insured. Term life insurance is added on a person other than the primary insured, with the rate based on the other person's age, sex, underwriting classification, and amount of coverage.
6. Children's Insurance. Term insurance on each child is added, usually to the age of majority. Generally, a child cannot become insured before the age of 15 days or after his or her eighteenth birthday.
7. Additional Insurance. Term insurance can be added to ordinary life policies as an additional layer of coverage for some specified time interval.
8. Transfer of Insureds. In business situations, generally used to insure key persons with the cash value and the insurance coverage transferable from the initial insured person to another person.