Wednesday , May 18 2022
personal accident insurance

Should I Buy Personal Accident Insurance if I Already Have Life Insurance?

Preparation is always necessary to be ready for when misfortune strikes. An ill-timed event like an accident can cause a large dent not only in your current plans but also in your future. Taking personal accident insurance can help you financially in such a scenario.

A personal accident insurance policy provides financial coverage against loss of life, injuries, or disability that occurs to the policyholder due to unfortunate accidents. Still, many people do wonder whether they should opt for personal accident insurance if they already have life insurance, since the two may seem to overlap in terms of what they offer to cover. However, they don’t really overlap – in fact, personal accident insurance can form an important part of your insurance portfolio. To help you gain a better understanding, we have listed down several features of a personal accident insurance policy that could be beneficial for you. 

  • Comprehensive coverage against death, injuries, and disability 

An accident could mean several things. Along with the impact on your health, there could be a major burden on your finances also. The aftermath could lead to loss of employment and thus, a toll on your income and life savings. This could be devastating for you as well as your family and other dependants.

In such a scenario, a comprehensive personal accident insurance policy will protect you and your family in several ways. Let’s go through what it covers. 

a. Fatal accidents 

The nominees of the insured will be paid death benefits in case of the insured’s death due to an accident.

b. Total disability (permanent) 

If an accident causes the insured to become completely disabled, in a permanent way, then the insurer is eligible to pay a pre-agreed amount according to the policy. This is eligible even when the disability does not occur directly post the accident but within a year.

c. Partial disability (permanent) 

If an accident causes the insured to become partially disabled, the insured individual is eligible for a pre-agreed payout as mentioned in the personal accident insurance policy.

d. Total disability (temporary)

This means that if the insured individual suffers from temporary total disability due to an accident, they are eligible for a certain payout as mentioned in the policy. This is generally not covered in life insurance.

  • Children’s education benefit

Your children should be able to continue their education no matter what. When you opt for a personal accident insurance policy, you usually get a children’s education benefit offered by the insurance provider. This gives a sense of assurance to the policyholder that in case of an unfortunate accident, their children’s education will be taken care of by the insurer up to a specified limit.

  • Other benefits

Here are some other benefits you enjoy with a personal accident insurance policy:

  • Low premiums 

Taking a personal accident insurance policy would not cause much of a dent in your pocket as you can get good coverage even at low premiums. Do bear in mind that the premium may be affected by your occupation. This is because certain occupations are more at risk than others when it comes to the frequency of accidents. 

  • Ambulance benefit

If the policyholder suffers an untimely accident, then the ambulance charges that may be required post that will be paid for by the insurance provider up to a certain limit.

  • Cumulative benefit

Every time you renew your personal accident insurance policy, you will receive an automatic increase in your capital sum insured at no extra premiums.

These inclusions and features may vary between providers. It is advisable you contact your provider before going ahead with any decisions.

We hope this article has enlightened you about the importance of a personal accident insurance policy and why opting for it would be beneficial even if you have life insurance coverage.

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