Additional Death Benefit

When you buy a life insurance policy, you are betting on your own death. And so is the insurance company.

Joe Smith works at Big Rig Oil Co. He buys a life insurance policy for $3 million. He added on an additional death benefit to his policy. Joe works on an oil rig, which is a risky job. He wants to make sure his family is taken care of, in case of a catastrophic work event.

This is a predetermined set of circumstances that would pay out an additional sum of money. In Joe's case, if he died before retirement, his beneficiary (wifey # 2) would gain another $3 million benefit. Wifey #2 would then get the original death benefit of $3 million plus the additional benefit of $3 million...for a total insurance benefit payout of $6 million. Is there a Dateline episode here?