Which type of insurance policy is characterized by its provision of double benefits?

The type of insurance policy characterized by its provision of double benefits is travel accident insurance. This specific type of insurance typically pays a benefit if the insured suffers accidental death or dismemberment while traveling. The double benefit aspect refers to the fact that it may provide a lump-sum payment not only for the accidental death but also for a range of other accidental injuries, such as loss of limbs or other critical injuries sustained during travel.

This feature makes travel accident insurance particularly appealing for those who frequently travel, as it offers enhanced coverage during potentially hazardous situations associated with traveling. For example, if an individual dies in an accident while traveling, their beneficiaries would receive a payment that is often higher than a standard life insurance policy would provide in the event of accidental death.

Other types of insurance listed, such as disability insurance, term life insurance, and permanent life insurance, do not typically offer this dual-benefit structure in the same way that travel accident insurance does. Disability insurance focuses on providing income replacement for individuals unable to work due to a disabling condition, while term and permanent life insurance primarily offer death benefits upon the insured's passing without the added provision of double payouts for specific types of accidents.