Life and Annuity License Practice Exam 2026 - Free Life and Annuity License Practice Questions and Study Guide

The double indemnity benefit in a life insurance policy provides for a payout that is twice the amount of the standard death benefit in the event of an accidental death. If Walter's standard death benefit is set at $100,000, then under the double indemnity provision, the beneficiary would receive $200,000 if Walter were to die accidentally.

This structure is part of many life insurance policies to provide additional financial security to beneficiaries for unforeseen tragic events. The option reflecting the payout as double the standard death benefit is indeed the correct one because it aligns with the intent of enhancing coverage in the case of accidental death scenarios. Hence, the beneficiary would receive $200,000 through the application of the double indemnity clause.