It is always better to be safe than sorry, they say, and for the right reasons. Being prepared for unexpected events is the right decision to take for your personal security and that of your family. Ensuring your family is tightly wrapped in a financial security blanket in the event of an untoward incident is possible — with a personal accident insurance policy. It enables you to protect your family from financial and emotional burdens in case of death or life-changing disabilities. Investing in such a policy will provide the insurer with various forms of compensation.
Personal Accident Insurance is categorised into two types — Group Accident Insurance and Individual Accident Insurance.
1) Group Accident Insurance
This policy is taken usually by business owners to get coverage for their employees. Some insurers will provide a discount on the premium depending on the number of people that need to be insured. This plan is very basic as it offers limited benefits when compared with an individual accident insurance plan
2) Individual Accident Insurance
This policy offers several benefits to the individual and also guards them financially in case of accidental death, loss of limbs, sight, or any other physically damaging life-changing disabilities.
Types of coverage available in a personal accident policy:
1) Accidental Death Cover
In case of untimely death due to a tragic accident, this coverage provides the nominees the entire sum mentioned in the policy.
2) Permanent / Total Disability Cover
In case an accident leads to any form of permanent physical impairment, the policyholder can avail the specified sum mentioned in the policy.
3) Permanent Partial Disability Cover
As the name suggests, this relates to certain partial bodily damages in which case the policyholder will receive a certain percentage of the benefits as mentioned in the policy.
4) Temporary Total Disability
In case the policyholder is left bedridden for a short amount of time with a high chance of recovery, then the insured will be provided a weekly allowance that can also be used to pay EMIs in case of loss of earnings.