Colorado Life Producer License Practice Test

What does the accidental death rider do?

1. Pays double or triple the face amount for accidental death

2. Pays a fixed amount regardless of circumstances

3. Provides a monthly income for dependents

4. Pays only for hospital expenses

The correct answer is: Pays double or triple the face amount for accidental death

The accidental death rider enhances a life insurance policy by providing additional benefits in the event of the insured's accidental death. Specifically, this rider typically pays an amount that is either double or triple the face value of the policy when the death arises from an accident. This is particularly beneficial for policyholders who want to ensure greater financial protection for their beneficiaries in cases of unexpected incidents. In contrast, other options do not align with the purpose of the accidental death rider. A fixed amount regardless of circumstances does not provide the increased coverage based on the nature of the death. The provision of a monthly income for dependents is covered under a different type of rider or insurance product, such as a disability income rider or family income benefit. Paying only for hospital expenses pertains to health insurance or specific riders related to medical costs, rather than an enhancement for life insurance benefits due to accidental death. Thus, the purpose and benefit of the accidental death rider clearly align with the correct answer.