Personal Accident Insurance Coverage Secrets to Know

Personal Accident Insurance Coverage

Accidents are an unexpected and undesirable incident that can create a roadblock in your life. It may leave you disabled and dismembered which leads to additional medical expenses along.The only way to tide over the financial puddle is to buy a personal accident insurance. Personal Accidental Insurance policy not only covers you from accidental death and disability but also provides financial stability.

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Personal Accident Insurance

Therefore, every car owner and non-car owner should invest in personal accident insurance to safeguard them from unforeseen circumstances.If you are contemplating on purchasing personal accident insurance policy, then check for the following factors to reap maximum benefits:

1.Coverage- Life is precious and each of us wants to have a fulfilling one. This makes it difficult to put a price tag on the journey called life. However, life is unpredictable and often leads to undesirable results. Therefore, having an insurance that safeguards you and your family is lucrative. It is best to invest in a personal accident insurance with high coverage. High coverage means that the sum assured should be 10 times the amount of your salary as it takes into account inflation and rising hospital cost.
In many cases of accidental mishaps, the insured may be left disabled by losing one of his hands or suffer from a fracture that leads to 6 months bed rest. What happens then? Do you get the full the sum insured or part of it? Generally, the insurer promises a percentage of sum assured for such situations. Therefore, it is best to have a balance between death and disability benefits in your insurance policy.

2.Premiums- Premiums are regular instalments that need to be paid in order to keep the policy valid. They are paid in monthly or quarterly or half-yearly or annual basis. Typically, life and health insurance premiums are based on the age of a person where higher age means higher premiums. For personal accident insurance policy, premiums are decided based on occupation instead of age. There are three categories of premiums mainly- Class 1 (Low Risk) that includes accountants, lawyers and bankers, Class 2 (High Risk) includes money carrying employees, builders and contractors and Class 3 (Very High Risk) include journalists, people working with explosives and mountaineers.
Ideally, you should look for a policy that is low in cost but has high coverage but don’t compromise on the coverage amount in trying to cut back on premiums.

3.Payment- The claim process for personal accident insurance is simple compared to other insurance policies. However, when you are buying an accidental insurance policy, you have to decide on the mode of payment- meaning whether it is a lump sum or on a monthly basis. Financial experts are of the opinion that when taking an accident insurance policy, think of your needs- whether you want it to meet immediate financial liabilities or to provide a source of income to your family. The first option works for people who have taken vehicle loans or mortgages and the second option works if you are the sole bread earner in your family. The option of having both modes of payment is also available.

4.Terrorism Cover- A personal accident insurance has a list of inclusions and exclusions which you need to go through to get a fair idea of accidents or deaths you are insured from. Things like suicide or drug overdose or war activities are generally not included along with terrorism. However, it best to look for a policy that covers you from death or disability due to terrorist activities.

5.Other Benefits- When purchasing a personal accident insurance policy, ask for additional benefits like hospital expenses and child education cover. Although such add-ons will result in higher premiums, they are beneficial and important in securing your child’s future and restricting monetary drain on family’s finances.

The Bottom Line
Personal accident insurance is an excellent policy in this day and age. It should be included in your priority list if you are working in a profession that has high risk to your life. Therefore, when choosing an accidental insurance policy, check for these factors or ask your financial advisor about the same.

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