What does a multiple indemnity rider do regarding policy benefits?

A multiple indemnity rider is an add-on to a life insurance policy that enhances the policy's death benefit under specific circumstances. When this rider is included, it typically stipulates that in the event of the insured's death due to certain situations, such as an accident, the insurer will pay out double or triple the standard benefit amount. This provision serves as an added incentive for policyholders to secure extra financial protection for their beneficiaries, recognizing the higher risk associated with certain causes of death.

This additional payout can help provide more extensive financial support to the insured's beneficiaries during an already challenging time, reflecting a policy's enhanced value in circumstances deemed to be more severe or unfortunate.