Advantages of Personal Accident Insurance

By | June 8, 2014

Accidents are uncertain and it can happen at any point of time in your life and the impact can be devastating. It leaves a terrible impact on your finances with high costs against hospitalization and medical treatment, until you are recovered completely. In such difficult situation, it is personal accident insurance that will help you keep your finances smooth and in order.

Personal accident insurance is designed to provide coverage to a person against accidental injury, accidental death or disablement that can take place either at home or outside. This coverage protects you and your family’s financial security in the event of an accident or disability.

Personal accident insurance is highly recommended for people working in construction, heavy industry, mining, etc., where people are at a higher risk to accidents. It benefits the insured person with a lump sum, hospital fee and monthly tax-free income, if he/she is seriously injured in an accident which makes him/her unable to continue work.

In this article, we discuss briefly the benefits of personal accident insurance policy and how it helps the insured person from financial hardship.

Benefits offered by personal accident insurance policy
The benefits of personal accident insurance are numerous. Therefore, stop thinking whether you need to avail one for yourself, it is worth your investment. Benefits from the policy are:

  • Provides lump sum amount of cash based on injury: Personal accident insurance provides a lump sum amount to the insured person on sustaining permanent disability or death as a result of an accident.
  • Compensates hospital fee: Personal accident insurance policy reimburses the cost of your treatment, medical expenditures and use of hospital facilities or if hospitalized for further treatment for your injury. Take an example: If you are insured with personal accident insurance and were involved in a serious road accident, due to which you lost a limb, then this policy will take care of your hospital fee.
  • Monthly tax-free income: With personal accident insurance, you receive the benefit of monthly tax-free income, if you are unable to work as a result of serious bodily injury in an accident.
  • The coverage is global and is paid in the host country’s currency, tax free: This policy offers compensation regardless of the place of accident. In other words, even if the person affected is from a different region of the globe the coverage is valid. For example: Suppose a person from UK is working in US faces an accident and had purchased personal accident insurance in UK, then he will be paid the compensation in US dollars and the tax deduction loss is also applicable.

Therefore, having covered with personal accident insurance is a sensible decision to avoid financial problems as well as to handle financial crisis situation in case you meet with an accident. Because life must go on, no matter what.