When buying a health insurance policy or renewing an existing medical insurance plan, it is crucial to understand the coverage and its benefits. A personal accident policy can provide more than just pay at the time of death. It can financially secure you and your family in an accident.
In most cases, even minor accidents such as a leg fracture or falling off your two-wheeler are also covered by the policy. If you aren’t sure whether or not to invest in an accident insurance plan, here’s why and how it can be beneficial.
So, if you are seeking medical cover that can secure your financial expenses in case of a health emergency resulting from an accident, accident insurance can come to the rescue.
Accidents can render one either temporarily or permanently disabled, leading to loss of income and an accruing medical expenditure. However, people often don’t prioritise this plan as such a policy does not provide tax benefits. Also, as the plan has a low premium, few providers sell them aggressively.
Features of an accident insurance
– A personal accident plan provides a death benefit. So, in the unfortunate event of the policyholder’s death, the insurance provider will pay the entire sum insured to the nominee.
– In the event of permanent total disablement, a certain percentage of the sum insured is paid to the policyholder by the insurer.
– If the policyholder suffers a permanent partial disablement such as loss of a hand or index finger, etc., a percentage of the sum assured is paid to the policyholder weekly or monthly.
– In case of a temporary total disability such as a fracture in a hand or leg, the policyholder is entitled to receive weekly benefits for accidents that need confinement for up to 104 weeks.
– The insurer pays a fixed amount towards the carriage of mortal remains in case of accidental death.
– Education grant: The policy covers the cost of education for the policyholder’s dependent children up to the age of 23 years.
As accidents don’t make an announcement, one needs to make a conscious choice of buying an accident insurance plan. Just make sure to check the exclusions of the policy before investing.
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