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Top 10 Reasons to Buy Personal Accident Insurance Policy
23 September 2020
Insurance of any kind is always a good idea. But of all the insurance products in the market, which ones are right for you? This is a question that’s best answered by taking into consideration your requirements and your financial goals. Nevertheless, there are some kinds of insurance that are essential for everybody. Among these are health insurance, critical illness insurance and personal accident insurance.
A personal accident insurance plan insures you against the financial burden and the medical costs associated with disability or death following an accident.
If you haven’t yet invested in a personal accident policy, here are ten benefits & reasons why you should add one to your portfolio.
1. It offers an accidental death cover
The primary benefit of an accident insurance plan is the death cover it offers. In case the policyholder unfortunately passes away due to an accident, a personal accident policy offers a lump sum assured to the family or the beneficiaries of the deceased person. This can alleviate a huge financial burden.
2. It comes in handy in case of permanent disability
You know that these insurance plans offer a death cover. But not all accidents result in deaths. Sometimes, victims may often be paralysed or suffer other disabilities that may render them totally incapable of leading regular lives. In such cases of permanent disabilities, depending on the severity of the case, personal accident insurance offers a predetermined lump sum.
3. It is also useful in case of temporary total disability
An accident insurance plan not only takes care of permanent disabilities, but also has provisions to take care of temporary total disabilities. In case of temporary disabilities, there may be a loss of income for a few months in case the policyholder is unable to head out to work. In such situations, a personal accident policy helps compensate for this temporary income loss.
4. It makes it possible to meet family transportation expenses
Following an accident, the victim may not always be hospitalized in a place close to home. Depending on where the accident occurred, hospitalization may occur in another city or state. At such times, the family of the victim may need to travel to the place of hospitalization. These costs can often be steep, depending on the distance. A personal accident policy can help meet these expenses.
5. It enables home or vehicle alteration
Permanent or even temporary disabilities may need you to alter your home or your vehicle so it can adapt to your new requirements. Depending on the kind of adaptations required, the costs may be significant and naturally, unexpected. Some personal accident insurance plans have provisions that offer the policyholder a cover that takes care of these expenses as well.
6. It helps meet medical costs
It goes without saying that accidents that result in disabilities, whether temporary or permanent and whether partial or total, will be followed by medical costs associated with treatments and care for the victim. Given the rate of inflation and rising hospitalization expenses, it helps to have a personal accident insurance plan in place, because it covers these costs.
7. It allows your family to meet their life goals
In case of accidental death or disability that results in the loss of the primary source of income for a family, meeting life goals as per the original timeline may become difficult, if not impossible. But with the sum assured by a personal accident policy, the family of the policyholder need not put their plans on hold and can meet all the essential life goals as planned.
8. Your children’s education can remain on track
Following a disability or death related to an accident, it can be hard for the survivor or the victim’s family to meet significant expenses like the costs of educating the children. This is even truer if the victim was the primary or the sole breadwinner for the family. But with the lump sum or the periodic benefits of a personal accident insurance plan, the education of children in the family can remain on track.
9. It can take care of your children’s wedding expenses
By the same vein of thought, a personal accident insurance plan can also help meet another significant set of expenses in the lives of the children of accident victims – the costs associated with their weddings. The benefits can prove to be useful to meet this milestone even if the policyholder’s earning ability is negatively affected by the accident.
10. It helps take care of your dependent parents
Personal accident plans can also help meet the costs of taking care of dependent members in the family, such as aged parents, young children, or spouses who have no source of income of their own. This can help sustain their quality of life despite something untoward happening, like an unexpected accident.
For these reasons and more benefits, it is necessary to include a personal accident plan in your portfolio. Supplementing this kind of insurance with a health insurance plan can further secure your future and the future of your family. So, ensure that you’re adequately protected from all possible contingencies.