If you wanted to, you could really rename the insurance industry the "what if" business. After all, people buy insurance policies to guard against the possibility of financial ruin if certain events should occur unexpectedly.
Take life insurance, for example. These policies promise to pay out a certain amount of money to designated beneficiaries if the policyholder passes away while the policy is in effect.
However, there are certain addendums to life insurance coverage that can be attached to a policy in order to address other "what if" scenarios. These additions are called riders, and they usually can be included in a life insurance portfolio for a nominal charge (or even for free).
What If You Die in an Accident?
One of the most common life insurance riders is known as an accidental death benefit. This provision calls for additional monies to be paid out if the policyholder's death is accidental. Often, the amount of money earmarked for this purpose is equal to twice the death benefit (this arrangement is also known as double indemnity). This rider may be attractive to young adults, since the most frequent cause of death among Americans aged 15 to 29 is motor vehicle accidents.