No matter how alert and careful we try to be, accidents can and do happen to each and every one of us. Quite often, there is little that you can do to prevent these accidents. The best that you can do is to keep yourself secured with the help of a personal accident insurance policy. This policy will cover you for accidental death and injuries caused due to accidents.
Now, personal accident insurance can be purchased as a standalone plan or added as a rider to an existing insurance plan such as health or life insurance. The availability of these options might make you wonder which one you should opt for.
Would you be better off with a standalone accident insurance cover added to your insurance portfolio?
Or are riders the best way to go?
In this article, we attempt to provide perspective so that you can find the best alternative that suits your distinct needs for coverage.
The many benefits of personal accident insurance
If you are new to the concept of personal accident insurance, you need to first know what this type of insurance covers.
A personal accident insurance policy covers the insured individual against accidental death, permanent total disability, temporary total disability, and permanent partial disability. The payout given for each of these will be outlined in the accident insurance policy. Apart from these benefits, personal accident insurance policies are also known to provide educational benefit for dependent children, coverage for loss of employment, compensation for ambulance charges, and compensation for the insured individual’s articles of clothing that got damaged in the mishap, among other things.
As one can imagine, the benefits of having a personal accident insurance policy are immense. The coverage you get can serve to supplement the protection you have from health insurance.
Personal accident insurance standalone vs. rider – the differences
Now, you can opt to buy personal accident insurance as a standalone plan or you may opt to add it as a rider to another independent insurance product. Each of these two options holds benefits of its own for you – let’s take a look:
. Personal accident insurance as a standalone plan
If you opt to buy personal accident insurance as a standalone plan, the sum insured will most likely be higher than that of a rider. The sum insured can even go as high as Rs 75 lakhs. Moreover, you also get the option of adding riders to your standalone personal accident insurance plan. For instance, you may add a rider that extends the coverage of your accident insurance policy to include compensation for prosthetic limbs, crutches, wheelchairs, and stretchers. You can also add a rider that covers the expenses incurred by you when you need to return home after hospitalization due to an accident away from home.
Standalone personal accident insurance plans generally offer worldwide protection. This can prove to be extremely handy as accidents can happen at any time; the last thing that you would want is to be stuck on foreign shores with heavy medical expenses and no way of paying for them.
Apart from the benefits listed above, standalone personal accident insurance plans are the ones that generally offer you the benefit of coverage for children’s education and employment loss if you suffer from an accident that qualifies for these claims.
. Personal accident insurance as a rider
A personal accident insurance rider will generally only cover the policyholder against accidental death, permanent total disablement, and permanent partial disablement. A rider may generally not offer any coverage beyond these conditions.
When you opt for a personal accident insurance rider, you cannot enhance or customize your coverage further with other riders as you can with a standalone plan. The coverage limit also may be much lower than what you can expect from a standalone plan. As a result, a rider will also prove to be much lighter on the pocket.
Do bear in mind that the benefits of personal accident insurance standalone plans and riders will vary between Health insurance companies. It is advisable to do proper research by going through the policy fine print before you make your purchase.
. Personal accident insurance as a standalone or rider – the verdict
The decision of choosing between personal accident insurance as a standalone plan or rider ultimately lies with you. Your distinct needs for coverage will determine which option you opt to go with. For instance, if you want a larger sum insured to protect your family in case you meet with an accident, you might want to go for a standalone plan. This way, if something unfortunate happens to you, your family will be able to keep the home running and afford their expenses without having to reach out to anyone else for help.
On the other hand, if you already have a solid life insurance plan in place, you might simply choose to increase your protection by opting for a personal accident insurance rider. This way, you are truly enhancing the coverage you receive from your insurance policies – you stay protected in a more holistic way.
Always keep your budget in focus when choosing between a standalone plan and rider. You do not want to simply cut off your coverage after a while simply due to monetary constraints.
Do bear in mind that your standalone personal accident insurance plan will also come with the added feature of a cumulative bonus. Under this bonus, you get a certain percentage of increase in your policy’s sum insured for every claim-free year. You receive this benefit provided you do not make any claims in the given year and provided that you renew your policy before it expires.
Remember that keeping your insurance coverage active can help you face life’s uncertainties with full confidence. For further help in selecting personal accident insurance coverage, do speak with an insurance professional. Remember to ensure that your loved ones too are protected by insurance policies of their own. Hope that this article has helped you gain a better understanding of personal accident insurance and the benefits it holds for you. Take care.