The Importance of Personal Accident Insurance

The Importance of Buying a Personal Accident Insurance Policy

A personal accident insurance covers the policyholder against any accidental death or disability. Personal accident insurance is important because it saves on the medical expenses which are sky rocketing these days and protects the family financially in case of the policyholder’s demise.

Minor injuries and accidents may not be a huge burden, but any major accident can wipe away all your life time savings. It is thus necessary that you take insurance to protect yourself from any such mishap. The insurance policy has been devised to help the insured person and his family members in the case of death or permanent disability of the policyholder.

Personal accident insurance provides insurance against any bodily injury, demise or impairment, which has been caused because by a violent or any external hazardous means. The types of accidents include rail, air or road injury as well as any collision, a fall, a burn or in case of drowning etc.

The policy safe guards the dependents of the insured in case such an incident happens to the policyholder. The best plans would provide protection against any short term or permanent impairment or demise and be helpful to safeguard the finances of the policyholder’s family.

The Types Of Personal Accident Insurance

Personal accident insurance has been broadly divided into the two main types:

Individual accident insurance
This policy insures an individual in case of an event that is either intentional or unintentional and causes a mishap. The wound incurred could either be short term or a lifelong impairment. The plan also protects in the case of the policyholder’s demise.

Group accident insurance
This is a group plan particularly useful for companies where all the employees of the firm are covered under the plan. The company providing the insurance may provide a discount on the insurance premium which depends on the strength of the employees. This is a good incentive for small firms as the group plan can be purchased at a very low cost. However, the group plan is a basic plan, and the benefits that one can avail from an individual plan may not be available in a group insurance plan. Most of the policies, however, include any short or long term disability and demise of the policyholder.

The personal accident insurance plan protects the policyholder as well the partner from any concern that may affect them economically. This could include a loss of income or any medical expense that is incurred because of an unexpected accident. Knowing what the features of the policy are, its advantages and how it covers any impairment or demise is important.