Describe double indemnity?
The policyholder is paying a fixed premium for coverage on a loan that has a decreasing payout.
Policyholder buys gap insurance is paid out from the base auto insurance in the cab insurance for totally in their car.
Life insurance rider that may result in beneficiaries receive in double the insured him out in case of death or severe injury.
Policyholder has both term life insurance and mortgage protection, life insurance.
Double indemnity is a type of insurance policy that provides additional coverage or benefits in the event of a specific circumstance occurring. This term is often associated with life insurance policies but can extend to other types of insurance as well.
In the context of life insurance, double indemnity refers to a rider or provision within a policy that provides for the beneficiary to receive double the face value of the policy in case of the insured's death or severe injury resulting in disability. This means that if the insured dies or experiences a covered severe injury, the beneficiary would receive twice the amount initially stated in the policy.
The term can also be applied to mortgage protection insurance, where the policyholder has both a term life insurance policy and a mortgage protection policy. In this case, if the insured passes away, the mortgage protection policy would pay off the outstanding mortgage balance, ensuring that the policyholder's family does not have to bear the burden of the mortgage.
In the example given, the policyholder is paying a fixed premium for coverage on a loan with a decreasing payout, which means the coverage amount decreases over time as the loan is paid off. Additionally, the policyholder has also purchased gap insurance, which covers the difference between the base auto insurance payout and the outstanding loan balance if their car is completely totaled. These additional coverages aim to provide added financial protection and peace of mind to the policyholder.