Benefits of personal accident insurance: Protecting You and Your Loved Ones

As we grow older, the risks regarding our health and overall safety increase exponentially. This is why most buy insurance policies such as life and health insurance. But some accidents that occur in our life are not covered by these two instance policies. This is where a personal accident insurance policy comes into play. 

There are a lot of benefits of personal accident insurance which makes it a must-have, especially for people who are in their retirement. First, this insurance covers any accident and the resulting damages such as hospital bills, etc. Next, they are pretty much cheaper than health and life insurance policies. They also are not confined by any geographic location. 

Let’s take a detailed look at what the benefits of a personal accident insurance policy are. 

What is accident insurance?

Before going into the details of an accident insurance policy’s benefits, first, we have to know what an accidental insurance policy actually is. Accidental insurance is an insurance policy that covers the damages the insured person suffers while under the policy’s coverage. If you are hospitalized, the policy will cover your hospital bills, and if you die due to the accident, it will pay the beneficiaries either a lump sum or a monthly amount. 

Due to their coverage, accident insurance is often confused with life and health insurance policies. But these insurance policies have some basic differences. For example, life insurance only covers you if you die, no matter what is the cause. On the other hand, accident insurance covers you whenever you have an accident, irrespective of whether you live or die. 

Health insurance covers your hospital bills if you fall sick, and they will cover up to a certain amount of your bills. They will not cover your family if you die. While the scope of accident insurance is narrower, it will cover not only your hospital bills and medical costs, but it will also cover your family in case you die in an accident.

So, if you ever wonder “How does personal accident insurance work?”, here is your answer. 

What benefits can you get from personal accident insurance?

Now that you know what accident insurance is and how it operates, now it is time to know how you can benefit from this policy. Here are the benefits you can obtain from a personal accident insurance policy. 

1. It covers a lot more things than health and life insurance

There are a lot of damages one can suffer when they are involved in an accident. Not only can they die or be hospitalized, but they might also require rehabilitation services, which are not covered by health insurance policies. The personal accident insurance policy covers these expenses as well as the more traditional costs such as hospital bills, etc. 

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2. It doesn’t involve medical underwriting

Sometimes when you apply for life insurance, there is medical underwriting that evaluates the risks and value of your insurance. This might lead to your insurance application getting rejected. But when it comes to a personal accident insurance policy, there is no medical underwriting involved. 

Also, if you were denied a life insurance policy, it will have zero effects on you getting personal accident insurance. 

3. Less costly than other policies

One of the biggest attractive aspects of personal accident insurance is its extremely low cost. Sometimes life insurance, health insurance, and other traditional insurance policies are too expensive for people to buy. But a personal accident insurance policy is quite cheap depending on your living place and the extent of your coverage. 

4. Protects self-employed people

When you are employed, you will have a health insurance policy that will cover you during the time you work in your employment, which includes sick leaves. But if you are a self-employed person, there is no health insurance policy to cover you during your sick leaves. But if you buy personal accident insurance, you will at least be covered if you are met with any accidents. 

5. It provides you with peace of mind

The main goal of buying insurance policies isn’t the financial coverage people get, rather it is the peace of mind that comes with being insured. If you buy a personal accident insurance policy, you can relax knowing you as well as your family will be covered in the case of an unfortunate accident. 

Also, you don’t have to worry about the loss of income for the time you will be in the hospital as you will be covered for the loss of income until a certain amount of time. You will also be paid a fixed sum of money every day for 30 days from your accident. Additionally, your children’s education costs up to a fixed age will also be covered by personal accident insurance. 

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6. It is not confined to any geographical location

Usually, life and health insurance don’t work outside a certain geographical location. For example, if you buy life insurance in Liberia and you die in Nigeria, your family will not be covered in most cases. But if you buy personal accident insurance in Liberia, you will be covered no matter where you have an accident. 

Final Words

Personal accident insurance is a blessing for people who want to cover themselves in the case of an accident. A lot of its allure has to be attributed to the benefits of personal accident insurance. These benefits play a big role in convincing people to buy this insurance policy. 

FAQ

1. How many types of Personal Accident Insurance are there?

There are two types of personal insurance policies you can buy. They are: 

1. Group personal accident insurance: This policy is bought by companies for their employees. 

2. Individual Personal accident insurance: This policy is bought by individuals to protect themselves and their families. 

2. What is not covered in personal accident insurance?

There are a few things that are not included in personal accident insurance policies. They are: 

• Self-inflicted injuries
• Accidents that happen when you are under the influence
• Accidents that occur when you are committing a crime
• Dental injuries
• Accidents occur as a result of a previous illness. 

3. Who can claim personal accident insurance?

To claim personal accident insurance you have to be between 18 to 65/70 years old, and you also have to be a citizen of the country from where you bought the insurance.