Which of the Following Statements Regarding the Accidental Death Benefit

question 4

Multiple Choice

Which of the following statements regarding the accidental death benefit rider (also known as double indemnity) is true?

• A)Adding the accidental death benefit rider doubles the premium for the policy.
• B)Financial planners agree that adding the accidental death benefit rider is a wise purchase.
• C)The economic value of a human life is doubled or tripled if death is caused by an accident,justifying the purchase of the rider.
• D)The death benefit is doubled only if an accidental injury is the direct cause of death and death occurs prior to a specified age.

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Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method or decision.

Self-Control Problem

The difficulty individuals face in resisting short-term temptations to meet long-term goals.

Behavioral Economists

Experts who analyze the influence of psychological, cognitive, emotional, cultural, and social factors on the economic choices of persons and entities.

Self-Interest

That which each firm, property owner, worker, and consumer believes is best for itself and seeks to obtain.