Personal accident insurance is still relatively unknown compared to standard health or life insurance plans. That does not, however, minimise the significance of investing in one to safeguard your loan portfolio. You must purchase a personal accident policy if you are the family's primary income provider. Knowing how unpredictable life can be, it is essential that you purchase a personal accident policy that may offer you appropriate coverage in the event of a permanent disability and financially shield your loved ones in the incident of a fatality. But what makes it great is that personal accident insurance coverage is affordable in India.
What Makes Personal Accident Insurance Necessary?
Accidental insurance coverage frequently resides in a murky area that your life insurance or health insurance will not cover. Accidents can leave you entirely or partially disabled, preventing you from working and hurting your family's interests. Additionally, your life insurance doesn't offer the necessary protection under such circumstances. Health insurance only covers hospitalisation costs, so you cannot rely on it. It would help if you bought a personal accidental insurance policy to protect yourself in case of an unanticipated occurrence. When an accident occurs, it will make it easier for you to get financial aid.
Accidents occur every day, and given the state of the roads and the traffic volume, there is always a significant chance of a collision. Even the safest drivers occasionally get into accidents because of the negligence of others. Therefore, it is essential that you obtain personal accident coverage to protect yourself against the dangers of an accident.
Several accidents can occur at work in addition to traffic collisions, mainly if you work in a dangerous environment like a factory where you might have to operate large machinery. Any accident can result in severe injuries or, in certain circumstances, even death. Therefore, having a personal accident policy is advised. However, before you purchase personal accident insurance coverage, you should be aware of a few key factors: You won't receive any tax advantages from purchasing personal accident insurance coverage. However, there are various advantages to buying one!
Personal Accident Insurance Policies: Benefits, Types, and Coverage
An accident while travelling is covered by a personal accident insurance policy if it results in the loss of life, limb, or general disability. People who frequently travel for work should obtain personal accident insurance coverage.
The Advantages
Having a safety net to deal with any kind of unforeseen and destructive event is always to the advantage of your family and yourself. The security of your family is the most considerable benefit of purchasing a personal accident insurance policy, particularly if you have dependents like young children or elderly parents to support. Additionally, purchasing a simple personal accident insurance policy is significantly less expensive than a term life insurance policy. Check out some specific benefits below:
- It gives your loved ones and family the required financial security.
- No additional tests or paperwork are required beyond what is already in place.
- Extensive coverage at significantly lower costs.
- Plans are offered in two categories: family and self.
- It provides coverage globally.
- It provides an effortless and straightforward claim procedure.
- Support centres are open every day and at all hours.
- The policy can be altered to meet your unique requirements.
The Types of Personal Accident Insurance Policy
There are two distinct types of accidental insurance policies:
Personal Accident Protection - This insurance covers accidental death due to an accident and cases of losing limbs, vision, or other bodily functions.
Group Accident Insurance - According to the company's financial health, businesses typically provide group accident insurance plans to their staff members at a discounted price. But these plans have limited features and are very basic.
The Coverage
You should know that basic health insurance coverage will not help you against such temporary disabilities, and you will be forced to spend a considerable amount on a more expensive policy. Basic coverage typically protects against death and permanent total disability. A decent personal accident insurance policy will also cover minor accidents that result in injuries, such as those sustained while playing games, falls at work, bike accidents, etc. Personal accident insurance covers you in the following cases -
Death by Accident – The nominee will receive the sum assured in the event of the policyholder's accidental death.
Permanent Disability – If an accident makes the policyholder permanently disabled, the nominee will receive the pre-agreed amount.
Permanent Partial Disability – If the accident imposes permanent partial damage to the insured, they will be given an assured benefit of 100% of the sum.
Temporary Total Disability - A pre-agreed amount is paid to the policyholder in case of an accident that makes them entirely disabled for some time.
The Impact of the Age Factor on This Policy
This concern is relatively common since your optimum life or health insurance premiums change with age. On the other hand, personal accident insurance rates are age-independent and constant for all age groups. It does, however, consider your occupation and salary. You will likely be excluded from coverage by some health insurance companies if you work in a high-risk profession, such as a sports trainer who engages in adventure sports, an air force or military personnel, or an offshore worker, to mention a few.
Conclusion
Check your terms and conditions and choose the one that offers sufficient coverage because a group personal accident insurance policy typically does not provide the same benefits as an individual coverage. In addition, the insurance provider will constantly double-check the integrity of the circumstances leading up to the accident for personal accidental insurance. False information and discrepancies may cause the health insurance claim to be rejected.
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