What do we do to show our love to our loved ones? We buy property, gold, vehicles etc. Then to secure or protect that love we keep insuring that property, gold and vehicles too. Not only that we cover our lives too!

However,if you are a bread-earner of the family then you miss insuring the very important entity of the family – that is you!

Accident is that guest which always comes uninvited and most of the time when you are least prepared for it .It shatters your confidence, finance and brings upheaval in your whole setup. To avoid you and your family from all this, accidental Insurances are designed.

There are various types of insurances like general, health, life cover, house, motor and accidental insurance! Accidental insurance is generally known as “Personal accidental insurance”

What is Personal Accidental Insurance?

Personal Accidental Insurance covers policyholder against death or disability due to an accident. Generally, all insurance companies sell these policies but most unlikely you will hear about it from your insurance agents. As these low priced policies, offer very less (about 10 %) commission to these agents.

Magnitude of mishap does not matter in case of Personal Accident Insurance as it can cover minor accidents like falling off from cycle and breaking your arm. As young people are more prone to accidents, these policies are essential for them.

Types of Accidental Insurance:

1) Group Accidental Insurance :

This Insurance is generally done by the companies for their employees. It generally covers the very basic loss caused by an accident. If you are looking for wider coverage, then it is better to consider a separate personal accidental insurance.

2) Personal Accidental Insurance

a) Premium rates are nominal.

b) It offers wide range of benefits.

c ) You can get cover of up to 8 times of your annual salary.

d) Additional protection can be bought for partial/temporary disability and even loss of livelihood.

Must Read before buying Personal Accidental Insurance:

1) Read terms and conditions carefully, before buying any Personal Accidental insurance Policy.

2) You can avail the benefit of hospitalization after accident if and only if you are admitted to hospital within 7 days of your accident and your minimum hospitalization stay is one day.

3) Check whether your policy is covering total and partial disability both because

A)Loss of one finger of your hand

B)Loss of one eye

Are some of the injuries, which are considered as only partial disability and may not provide you any cover if you opted for permanent or total disability in your cover.

3) If you have opted for cover against permanent and partial disability still you must remember that:

a) if you have a fractured leg then your policy will pay you a sum of Rs.3000 /week for up to 100 weeks.

b) That sum will paid if and only if you are unable to go for work and you submit all the proofs related to that e.g. Doctor’s certificate.

c) This payment will start only 60 days after the accident.

Why should we buy Accidental Insurance?

Accidents lead to sudden unexpected medical expenses. Also accidents can reduce a person’s earning capacity temporarily or permanently. To compensate the unexpected medical expenses and income loss is the main motive behind accidental insurance.

Accidental insurance is an important risk management tool which will take care of the sudden medical expenses and income loss due to accident.

When we say accident it need not be a roadside accident as you imagine. It can be a snake bite or just falling in the staircase …

So what are you waiting for go and gift your loved ones a better You!!! as Life is uncertain But Your future doesn’t have to be!!!

The author is Ramalingam.K an MBA (Finance) and certified financial planner. He is the Director & Chief Financial Planner of holistic investment planners (www.holisticinvestment.in) a firm that offers Financial Planning and Wealth Management. He Can be reached at ramalingam@holisticinvestment.in

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