Health and Life Insurance

Category - Theory

What does accidental death and dismemberment pay?
  1. Principal sum
  2. Medical expenses
  3. Burial expenses
  4. Survivor benefits
Explanation
Answer: A - The accidental death and dismemberment pays the principal sum. This is similar to the face amount. Because it is accidental death and dismemberment, the same amount is paid in the event of death or if the individual loses two lags, two arms, or loss of vision in both eyes due to an accident. When paying for accident benefits, this is usually referred to as the capital sum.

Theory
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