Every day, as we go about our lives, we are susceptible to a number of risks. The probability of an accident increases significantly if your profession entails a lot of traveling. In such a case, we may never know when a mishap or tragedy might occur. This gives rise to the need for a personal accident policy to safeguard you against accidents. Let’s see why a standalone personal accident policy has acquired importance nowadays.
Before we begin to discuss the importance and features of a personal accident policy, it is crucial to understand what an ‘accident’ is. To put it simply, an accident is any unfortunate or undesirable event that results in loss or injury. There are two types of financial losses that are incurred. First is the one that is caused due to medical expenses and the second is due to loss of income resulting from the inability to work.
A personal accident insurance is a policy that offers coverage for loss during an accident. This cover has an advantage over a life insurance policy in the sense that it offers coverage from death as well as injuries. The injuries can be permanent or temporary subject to policy coverage. This makes the accident policy a very useful one. Accidental insurance plans generally cover permanent as well as temporary disabilities. For instance, if you get a burn or if your hand gets fractured in an accident, you can be assured that your accidental policy will cover you. Additionally, there are certain insurance companies that offer add-on coverage in case of certain scenarios.
Who should buy a personal accident cover?
-It is highly recommended for young drivers who you use a vehicle on a daily basis to work or college. If you use a two-wheeler it makes it all the more important to go for an accidental insurance.
-If you have availed a loan such as home, car or even a personal one for that matter. It makes sense to get a personal accident cover so that your family members are safeguarded against repayment of the pending loan amount.
-Accidental insurance is also advisable for professionals that work in high-risk environments such as a manufacturing unit or an offshore plant.
-People planning to include a rider to their existing life insurance cover: In such a scenario, it is recommended to go for a standalone personal accident cover since it offers more benefits and at a comparatively lesser premium.
An important advantage of the accidental cover is that it offers comprehensive coverage at good premium value. It is generally cheaper compared to life cover. In addition to that, you also get various discounts. You get good discount offers when buying a personal accident insurance online. Also, most insurers offer a cumulative bonus if you haven’t made any claims during a certain time period.
Lastly, before buying a personal accident cover it is important that you go through the policy document carefully. There are several exclusions to the cover that varies across companies. They include situations like an accident while engaging in adventure sports or under the influence of alcohol.