Minnesota Life Insurance License Practice Exam

What does an accidental death benefit provide?

1. Pays only in the event of an accident resulting in death

2. Pays a specified sum upon critical illness

3. Pays regardless of circumstances of death

4. Pays if the insured dies within a certain period

The correct answer is: Pays only in the event of an accident resulting in death

An accidental death benefit specifically provides coverage that pays a designated amount to beneficiaries if the insured dies as a result of an accident. This type of benefit is meant to supplement a standard life insurance policy by offering additional financial protection in the event of an accidental death, which may not be covered in the same manner by a traditional life insurance policy. The focus on “accident” clarifies that this provision does not activate for deaths caused by natural causes or illness but specifically for unintentional injuries or mishaps. It's important for policyholders to understand that these benefits are triggered by the specific circumstances surrounding the death, emphasizing the need to distinguish between accidental and non-accidental causes of death. Other options presented involve scenarios like critical illness or pay-outs regardless of circumstances, which do not align with the specific intention of an accidental death benefit. These alternative approaches focus on different aspects of life insurance or riders that serve other purposes not directly associated with accidental deaths.