Which is a limitation of the accidental death benefit rider?

The accidental death benefit rider is an additional feature that can be added to a life insurance policy, providing a death benefit to the beneficiaries if the insured's death results from an accident. One of the key limitations of this rider is its exclusion of coverage for deaths that occur as a result of illegal activities. This means that if the insured engages in unlawful actions that lead to their death, the insurer may deny the claim for the accidental death benefit.

This limitation is in place to mitigate risks for insurers, as covering deaths associated with illegal activities could lead to higher claims and potential abuse of the policy. It is crucial for policyholders to be aware of such exclusions in their accidental death benefit rider to understand when the coverage will not apply effectively. This helps ensure that individuals are making informed decisions regarding their insurance and recognizing the full scope of coverage and its limitations.