Before Buying Personal Accident Insurance, Keep These Things in Mind
Sachin, the only breadwinner of his family, one day met with an accident on his way back home. He suffered significant injuries and couldn’t get back to his normal self for around six months. The recovery period was both mind and budget shattering.
While Sachin’s health insurance policy took care of his hospital bills, there was no compensation for his loss of income. Therefore, his family had to go through a financial crunch until he was back on his feet.
The thought of something like this happening to you can send shivers down your spine. Therefore, to avoid such contingencies, it is essential to purchase personal accident insurance.
What is Personal Accident Cover?
A personal accident insurance policy covers the policyholder against accidental death and temporary or permanent disability resulting from the accident.The plan offers monetary reimbursement to the insured in case of any bodily injuries or disabilities caused due to the accident.
Buying personal accident insurance has become a potential hedge to prepare against any unforeseen events. However, before you opt for an insurance policy, you must consider some crucial factors, which can help you in making an informed decision. Some of them include:
- Type of Plan
Narrowing down on a personal accident insurance policy is one of the most important things. You can either opt for a family or individual personal accident cover according to your needs.
Before making the purchase, check all the types of accidents that are covered and excluded in the policy. While some companies do provide coverage against accidents caused due to natural calamities, many do not. Therefore, check the terms and conditions carefully before buying the policy.
- Premium Amount
The premium of a policy is the amount the policyholder is expected to pay at regular intervals to the insurer to maintain the validity of the insurance cover. Therefore, choose a premium amount that you can afford to pay.
The sum assured is mainly dependent on the premiums paid, which is why choosing a low premium amount may work against you. So, choose a plan that provides you ample coverage at a premium amount that you can afford.
Accidental death benefit, permanent partial dismemberment, and permanent total dismemberment are some of the inbuilt features in most personal accident insurance policies.
However, do check the extra benefits provided by the insurer in the policy. Check if the repatriation costs, weekly benefits,ambulance, and hospital costs are also covered in the plan.
- Claim Settlement Process
Proper claim settlement procedure can help in ensuring that the payout can be quick and hassle-free. Before making a purchase, therefore, it is essential that you enquire about the claim settlement process of the insurer. You can read online reviews, ask customers, or even check the claim settlement ratio of the insurer for this information.
Every year IRDAI releases a report in which the claim settlement ratio of every insurer is mentioned. Checking the CSR can help you in making a well-informed decision.
Alert Today – Secure Tomorrow
The points mentioned above are essential to be considered while selecting a personal accident policy. With the sky-rocketing medical bills, rising inflation and the increasing cost of living, buying health insurance will not suffice.Even a month without your income can cause havoc on your finances. Apersonalaccident policy will help you ensure that you have a back-up plan in case of any unfortunate event.
Moreover, while buying the insurance policy, check the claim settlement ratio of the insurer. Once you have narrowed down on the insurer, you must check the benefits provided under the policy.
Reputable insurers like Tata AIG General Insurance offer a personal accident insurance policy that includes benefits such as:
- Compensation for an injury that leads to dismemberment
- Payment for repatriation expenses
- Payment of weekly benefits in case of temporary disability
- Lifelong renewal of the policy
- Increase in principal amount by 5 percent every year if there is no interruption in coverage
- Payment of medical expenses and hospital bills
Therefore, to protect yourself from future uncertainties and to give your finances a solid foundation, it is necessary that you buy personal accident insurance.