Why A Personal Accident Insurance Policy is The First Insurance That You Should Buy?

It’s likely that you’ve already purchased term and health insurance plans and are now satisfied that you’ve adequately safeguarded yourself.

However, before you put your insurance plans on hold, you must first identify the gap in your insurance portfolio.
Only if you die will your term insurance coverage pay out to your family.
If you make it through the term, you will receive nothing in return. What if, God forbid, you suffer an unintentional impairment that results in a loss of income?
You will have to cope with other expenses such as household bills, loan EMIs, and so on, in addition to medical expenses.
However, if you don’t have any income, you can find it tough to keep up with all of these costs. Your term insurance company, on the other hand, will not pay anything because you are living.

As a result, you will be responsible for all of your medical expenditures without any financial assistance from anyone.
If you are hospitalized as a result of an accident, your health insurance coverage will cover your medical expenses up to a specified level. You may, however, have to deal with lost income in addition to medical bills.
As a result, you will have to pay the remaining medical bills as well as make suitable arrangements to recover from any financial losses incurred as a result of the loss of income.
So, what’s the answer?

Even after purchasing health and term insurance policies, you will have a gap in your insurance portfolio that can be filled solely with a personal accident insurance policy.
Here are some of the advantages of acquiring a personal accident insurance policy, which primarily covers all types of disabilities:

A basic accident insurance policy provides coverage for both accidental death and disability, and can be supplemented with additional coverage.
A personal accident coverage covers all forms of accidents, from minor to catastrophic, such as falling down the stairs at home, breaking an arm while playing football, and being hit by a car.
It’s a beneficial policy because it covers partial, temporary, or total disability, as well as loss of income.
Some insurance include extra benefits such as child education allowances, covering for terrorism-related injuries, and transportation of deadly remains, among others.

Some Horrifying Statistics:

In 2015, 400 people died in traffic accidents per day.
In 2014, 20,201 individuals perished as a result of natural disasters.
In 2014, 29,903 persons died as a result of drowning.
In the last six years, over 1.13 lakh people have died in fire incidents, with 27581 Indians dying in train accidents in 2014.
In the last year, more than 200 people have perished and 330 have been seriously injured in railway accidents.

When should you buy and how much coverage is sufficient?

Remember that accidents can occur even within the four walls of your home, therefore you should purchase a personal accident insurance coverage that is 100 times your monthly pay.
It means that if your monthly wage is Rs 5,000, you need have a minimum of Rs 50,00,00 in personal accident coverage.
Make sure to purchase the coverage when you are young, as the odds of being involved in an accident are higher at that age.

How much payout is available?

Whether or not an injury is covered depends on the type of impairment and injury.
The insurer pays the entire sum insured in the event of death or the loss of two limbs or hands; but, in the event of the loss of one eye or one hand, the insurer only pays half of the amount.
The most common payout made by insurance is as follows:

How to claim?

The claim process for a personal accident insurance policy is straightforward because no medical tests are required to confirm your damage.
While it is vital to notify the insurer within the specified time frame, you simply need to submit information such as your contact information, policy copy, accident summary, medical report, and so on.
Your claim will be resolved once you have provided all of the required documentation.

Is it costly?

No, not at all; in fact, the cost of a personal accident coverage is substantially lower than the cost of term insurance.
You’ll only have to spend Rs 1,482/year, or roughly Rs 123 per day, for a Rs 5 lakhs personal accident insurance policy.
Furthermore, the cost for personal accident insurance is not determined by the applicant’s age; rather, the applicant’s work plays a significant part in determining the rate.
As a result, a 25-year-old crime reporter will pay more in premiums than a 50-year-old dentist.

Furthermore, if you purchase the policy online, you will receive substantial reductions.
The insurer saves money on policy administration with online personal accident insurance plans, which is passed on to policyholders in the form of lower premium rates.
Some insurers also offer two- or three-year long-term personal accident insurance coverage. Take advantage of such deals and save money!
In order to calculate premiums, insurers can divide occupations into the following categories:

Standalone or rider?

If you have decided to purchase a personal accident insurance coverage after reaching this stage, the next step is to choose between a full-fledged insurance policy and a rider.
It is strongly recommended that you purchase a solo personal accident insurance policy rather than a rider.
A solo policy also covers a variety of damages, such as partial or temporary disability and lost income, but a rider only covers accidental death and permanent disability.
You may also be covered by your employer’s personal accident insurance, but you must still purchase your own personal accident coverage.

Personal accident insurance should be at least 5-10 times your yearly salary, while your employer’s coverage may be less.
Furthermore, when you leave your job, the group personal accident insurance policy will expire. You can also add your family members to your personal accident insurance policy.
Remember that while you can’t prevent accidents from occurring, you can certainly protect yourself by purchasing a personal accident insurance coverage.
By the way, I hope you now understand why a personal accident policy is the first insurance you should purchase.