Why buy personal accident coverage when you have term insurance?

Term insurance has become important over the years because of the safety net it provides to loved ones in the event of a policyholder's unfortunate death. However, amidst the focus on term insurance, many people ignore another important part of overall protection: personal accident insurance. When you choose the best term insurance plan, you can rest assured that your family will get financial security. Personal accident insurance on the other hand provides crucial support in the event of an accident resulting in disability or injury. If you're wondering if personal accident coverage is mandatory, the answer is no. However, experts seem to suggest that one should add both of them to their portfolio for comprehensive insurance protection. If you are still wondering why, continue to read to understand more about personal accident insurance.

Personal Accident Insurance: An Introductory Guide

Personal accident insurance is a sort of insurance coverage that protects people financially in the event of an accident that causes them to be injured, disabled, or killed. This insurance policy provides a variety of benefits, including coverage for

• Medical expenses
• Income replacement in the event of disability.
• Lump-sum payments for prolonged disability or accidental death.
• Reimbursement for rehabilitation expenses.

The main reason behind personal accident insurance is to ease the financial burden connected with accidents, ensuring that policyholders and their families have financial help during difficult times. It is an essential supplement to other types of insurance, such as health and life insurance, providing comprehensive coverage for unanticipated incidents and their consequences.

Advantages of Purchasing Personal Accident Insurance Coverage Alongside Term Coverage

Purchasing personal accident insurance alongside the best term insurance plan provides several benefits that enhance financial protection and provide peace of mind to the policyholders. Below are some of them for you to explore:

Comprehensive Protection: Purchasing personal accident insurance and term insurance together provides full coverage. While the best term insurance plan is important for ensuring financial stability for dependents in the event of the policyholder's death, accidents that result in disabilities or injuries can also have catastrophic financial implications. In such cases, accident insurance steps in to fill the gap by giving financial aid.

Medical expenses and rehabilitation: Accidents can cause a significant increase in medical expenses including hospitalization, surgery, and rehabilitation. These expenses can quickly deplete your savings and strain your finances. Personal accident insurance can assist in alleviating this financial strain by covering medical bills related to accidents. It also provides financial help for rehabilitation services such as physical therapy and specialized therapies, allowing the policyholder to recuperate without worrying about the associated expenses.

Income Replacement In the Event of Disability

Accidental injuries can result in temporary or permanent disability preventing people from working. The loss of income that results from this can have serious consequences for the individual and their family, compromising their financial stability and future plans. Accident insurance protects your income by compensating you for lost income due to disability caused by accidents.

Customized Coverage: Personal accident coverage, like term coverage, provides customized coverage options based on the individual's needs and lifestyle. Policyholders can choose from a variety of coverage benefits, including:

• Accidental Death Benefit
• Permanent Disability Benefit
• Temporary Total Disability Benefit
• Medical expense reimbursement
• Ambulance charges are covered.

This flexibility enables the policyholder to create a comprehensive insurance plan that meets their individual needs while still providing appropriate coverage against unanticipated accidents.

Peace of mind: Individuals can acquire comprehensive protection by combining the best term insurance with accident insurance. This comprehensive approach to insurance guarantees that the policyholder's loved ones are appropriately protected in all possible scenarios, providing reassurance and security for the future.

Who Should Get Accidental Insurance?

Despite taking precautions, accidents can occur suddenly, and no one has control over such events. As a result, it is suggested that everyone, regardless of age, occupation, or health status, get a personal accident insurance policy. It is recommended to get this policy as soon as one starts earning. Insurance experts recommend that the maximum coverage for accidental insurance be 10 times the individual's annual salary. However, certain individuals should have the personal accident insurance, including:

• Sole breadwinners for the family
• Individuals in risky occupations, such as builders, contractors, and engineers, performed superintending duties.
• People engaged in driving on the highway
• Employees who carry cash as part of their job

Note: If an individual has already selected an accidental death and disability rider in their life insurance policy and has a reliable health insurance plan, then personal accident insurance is unnecessary.

Exclusions in Personal Accident Insurance

Some of the usual exclusions to look out for include the following:

• Any intentional self-harm or suicide attempt
• Pre-existing disability or injury
• Accidents caused by drug or alcohol consumption
• Pregnancy or childbirth issues
• Engaging in high-risk or extreme sports
• Non-Allopathic Treatments
• Criminal activity or mental illness.

So we are saying,

While choosing the best term insurance is the backbone of financial planning, accident insurance is equally important in making sure the policyholder has comprehensive protection. By including both the types of coverage in their financial portfolio, policyholders can protect themselves and their families from the financial consequences of death and accidents.