What is the purpose of a 'double indemnity' rider?

The purpose of a 'double indemnity' rider is to pay double the face amount of the policy if the insured person dies as a result of an accident. This rider is designed to enhance the benefit provided under the life insurance policy, encouraging policyholders to take extra measures for safety, knowing that their beneficiaries will receive a larger payout in the event of an accidental death. This additional financial protection can be particularly important for those who may be engaged in high-risk activities or occupations.

In contrast, other options do not align with the specific function of a double indemnity rider. For instance, covering funeral expenses is a different benefit that can be addressed through a separate rider or feature but does not relate to the double indemnity provision. The option regarding policy renewal without increased premiums pertains to non-cancellation or guaranteed renewal provisions, which also differ from the intent of a double indemnity rider. The option mentioning coverage for a specific period relates to term insurance rather than the accidental death benefits provided by a double indemnity rider.