What provision is sometimes added to a policy to provide an alternative beneficiary in case of a common accident?

The common disaster provision is included in insurance policies to address situations where two or more insured individuals die in a common accident, such as a car crash or natural disaster. This provision ensures that if the policyholder and the primary beneficiary die simultaneously or within a short timeframe of each other, the benefits will be paid to an alternate beneficiary rather than the deceased primary beneficiary.

This clause helps to clarify the distribution of benefits in uncertain situations and provides peace of mind that the intended recipient will receive the policy benefits, avoiding potential legal complications regarding the timing of deaths. For example, if a husband and wife are both named in each other's policies and pass away in an accident, the common disaster provision specifies who will receive the benefits, ensuring that the intentions of the policyholder are honored.

The other options do not address this specific need: a dual beneficiary clause typically refers to two beneficiaries receiving benefits, an accidental death benefit is an additional payout for deaths caused by accidents, and a survivorship provision usually relates to the requirement that a beneficiary must outlive the insured to claim benefits.