The problem with accidents is that they are unexpected, unpredictable, and can often be financially exhausting. The consequences of an unfortunate accident can drastically change your life, not only for you, but also for your family.
Ask yourself the following question: Will your death or disability following a serious accident leave your family in dire financial straits?
If you are the sole breadwinner or make a significant contribution to your family, the answer is probably yes.
This makes a personal accident insurance (PA) plan a must for you and your family. PA insurance takes care of the negative financial effects of accidents and takes care of you and your family when you need it most.
What is personal accident insurance?
Personal accident insurance is an annual policy that provides compensation in the event of injury, disability or death caused only by violent, accidental, exterior and visible events. Definitions of violent, accidental, external and visible events vary from one insurer to another.
Different PA policies offer different coverage and range of benefits. Typically, the standard types of coverage provided include: accidental death, permanent disability, total or partial temporary disability, medical expenses, corrective surgery, hospital benefits, and funeral expenses.
The plan is designed to pay if you are seriously injured or die in an accident, when policyholders receive a tax-free lump sum in the unfortunate events that are included in the policy.
What is the difference?
If you already have life insurance and medical and health insurance, do you still need PA?
It depends. In all fairness, some of us need it and some of us who are lucky enough to never need it. But then how will you ever know? Accidents don’t just happen, they just happen.
The difference between PA insurance and life insurance or medical and health insurance is the cause of the injury or death. PA insurance does not cover injury or death from natural causes, such as illnesses like life insurance. Likewise, life insurance does not cover accidents that do not result in death.
This is why an individual accident policy works as a supplement to life insurance. To protect you and your family in the event of an accident that makes you unable to generate income or worse, causes your death. That’s why it’s a good idea to have both life insurance and life insurance – to cover your loved ones no matter what.
Health insurance and life insurance cover you in these cases, but if you are seriously injured, you will still need medical and health insurance to cover the medical costs for necessary treatments.
What are the conditions of coverage and exclusion?
The scope of coverage and the scale of benefits differ from one insurer to another. Therefore, it is important to read the fine print before purchasing a font to make sure it meets your requirements.
The types of coverage provided under a PA policy normally include:
There are also some exclusions. Death, disability or injury caused by the following events are generally excluded from coverage:
For people involved in certain dangerous occupations such as law enforcement officers, divers, pilots or crew members, aircraft testers, racing pilots, fishermen or recreational people at high risk who participate in bungee jumping, rock climbing and skydiving, may not be able to obtain PA coverage. It is best to check with the insurer or agent on these exclusions before proceeding.
If you have more than one health insurance policy, you or your beneficiary will be compensated in the event of death or disability. However, some claims such as medical expenses can only be made from a single PA policy. If the medical expenses are more than the sum insured, you can claim the difference from the second PA policy.
Individual accident coverage is not a substitute for life insurance, but it can provide a financial safety net for you and your family if you are faced with an unfortunate accident that results in your injury, disability, or death. It should definitely be used in conjunction with life insurance to be completely secure.
As with any other insurance product, indemnification terms and definitions vary from insurer to insurer, so it becomes necessary for a potential client to read and understand the offerings of various insurers, as well as the exclusions. police, before purchasing a plan that meets their needs.
This article was first published in May 2015 and has been updated for freshness, accuracy and completeness.
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