Accidents are unfortunate for many people each year, but nobody wants to be involved in one. Although you can’t plan for where and when accidents will happen, you can prepare if they occur. A car accident is an example of the type of incident when a personal accident insurance policy can be beneficial. The policy compensates victims of violent accidents for their disabilities, injuries, and deaths. This policy offers benefits that are quite different from those related to health insurance or life insurance. You can buy the policy for yourself alone or the whole family, as the name implies. It provides worldwide and round-the-clock protection, which is one of the best aspects of the insurance plan. Here are five reasons you should have a personal accident insurance policy, but first, let’s talk about the policy’s benefits.
Benefits Of Accident Insurance
A personal accident insurance policy offers different benefits. Below are the most important ones:
- Accidental death: In the event of the policyholder’s death in an accident, their nominee will collect 100% of the sum insured.
- Permanent total disabled: A policyholder who is partially disabled because of an accident may receive 100% of their insurance payout.
- Temporary total disability: Accidents that temporarily disable the policyholder may result in them receiving a 100% payout of their insured amount. It may be the case if, for instance, the policyholder gets a broken bone and must recuperate at home. Insurance for personal accidents may provide coverage for medical expenses and lost wages.
Here are the reasons why you should purchase personal accident insurance:
1. Medical Expenses Coverage
A person who has health insurance or personal accident insurance has quite a few options. The former policy covers medical expenses to some extent. Should you still be unable to pay off the remaining payments, you may use the latter’s coverage. In addition to paying for the remaining medical expenses, it will also cover rehab costs.
2. Less Burden On The Family
Personal accidents can change people’s lives. With the financial burden of paying for medical expenses, especially for a typical salaried person, it becomes challenging to cope with the loss of a loved one or the care of someone who becomes disabled. Personal accident coverage comes in handy in such situations by providing a range of benefits such as accidental hospitalization coverage, permanent or temporary disability coverage, etc.
Personal accident insurance policy is relatively low compared to other types of health and life insurance. People with high occupational risks, such as industrial workers, should opt for these types of plans. If you choose such an insurance policy, your savings will be less likely to be affected during an emergency. A policy purchaser’s occupation usually determines the premium amount.
4. Choice Of Plan
A personal accident policy can be purchased individually or through a group plan. A single person has its coverage, but a whole family will be under the latter. Employers generally offer their employees group accident coverage. There are some limitations, however, to group accident insurance policies. Therefore, it is crucial to check the features before purchasing.
5. No Medical Underwriting Is Required
As mentioned earlier, this insurance policy only covers severe injuries, which is why you don’t need any medical record to prove your injury. You can obtain protection and several benefits by purchasing this policy, even if you are not eligible for a life insurance policy.
Be sure to check the exclusions of any personal accident insurance coverage you purchase. In many cases, there is no coverage for pre-existing injuries or self-inflicted injuries. Thus, buyers should evaluate their needs before buying an accident insurance policy, consider the above factors, and read all policy documents thoroughly.