What does the term double indemnity mean in life insurance?

The term "double indemnity" in life insurance refers to a specific provision where the insurer agrees to pay a benefit that is twice the face amount of the policy under certain circumstances, typically if the insured dies as a result of an accident. This means that in the event of an accidental death, the beneficiaries would receive double the amount of the life insurance benefit compared to what would ordinarily be paid out upon the insured's death.

This feature is designed to provide additional coverage and security for the beneficiaries during tragic circumstances, essentially recognizing the unexpected and often more impactful loss that comes from accidental deaths. It is important to note that this supplementary payment applies only under the conditions outlined in the policy, usually emphasizing accidental death rather than death from natural causes or other stipulated exclusions.

While the other options may seem plausible, they do not accurately define the concept of double indemnity in life insurance. Therefore, option A captures the essence of double indemnity correctly, focusing on the provision that leads to a payout that is double the face amount of the policy.