Accidents can result in different types of injuries, including those that result in total or partial disability, which can affect your ability to work and earn an income.
In case of an accident, life insurance cannot provide the necessary protection, and medical insurance can only pay for hospitalization.
Accident insurance fills a nebulous space that neither life insurance nor health insurance can fully cover. You need personal accident insurance to ensure your family is financially protected from unexpected disasters such as accidents.
What is Personal Accident Insurance?
A personal accident policy covers loss of life, loss of limb or total disability due to an accident while traveling. For those who travel frequently, personal accident insurance is essential.
Personal accident insurance covers minor accidents as well as serious accidents. Total or partial disability is included in addition to death. Also, it covers temporary impairments that may prevent you from working for a period of time.
Your basic insurance won’t protect you from such temporary restrictions, so you’ll need to shell out a fortune for more expensive coverage.
According to several experts, personal accident coverage should cover 10 times your monthly salary.It is recommended to purchase an accident policy of approximately ¥For example, if your monthly salary is 100,000 ¥10,000. This will ensure that you receive enough money to cover key expenses such as loan repayments, childcare, and more.
What types of personal accident insurance are there?
- Personal Accident Insurance- Most insurance providers offer basic accident coverage that indemnifies beneficiaries in the event of death or total disability of the policyholder. Some plans may also cover temporary and partial disabilities.
- Group Accident Insurance- Certain plans allow policyholders to obtain group coverage for the entire family. Employers often offer group accident insurance plans for their employees because they get these policies at lower premiums based on the strength of the company.
What are the benefits of personal accident insurance?
Any policyholder who is physically impaired and unable to work (whether partially or completely) can file an accidental disability insurance claim. Total damage may be temporary or permanent. In the event of an accident resulting in permanent incapacity, a pre-determined amount will be provided to the policyholder.
They will receive 100% of the sum assured if the accident causes permanent partial damage to the insured.
In the event of the accidental death of the policyholder, the nominee will receive payment of the policy’s sum insured.
Under this policy, a certain maximum number of days is paid per day if the accident results in hospitalization. Also, if the hospital is far away, travel costs will be covered by personal accident insurance. Immediate family members of the policyholder are eligible for this benefit.
If one’s job involves significant hazards, one should consider purchasing personal accident insurance to protect yourself and your family.
Anyone over the age of 18 can buy this insurance. Typically, 65 is the maximum entry age.
It is important to remember that personal accident insurance does not provide tax deductions. These policies are created to ensure that policyholders can continue with their daily activities without worrying about the costs associated with an accident resulting in damage or death.
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First Posted: Jan 11, 2023, 1:16pm IT department