Why Health Insurance plan comes in handy at the time of an accident?

In this fast-paced world, accident cases aren’t uncommon. You cannot be waiting for an epiphany to realise how uncertain life can be. Due to a hectic life that most of us lead, we have no time to ponder on such things. So, it is always better to protect yourself financially from any such event by getting insurance. Most of us invest in health insurance plans, but we must also realise the importance of accident insurance plans for our precious life!

You would, of course, want your family to be safe and secure in case something happens to you. Your family will also be covered against any cost they might incur in case of a mishap with proper accident insurance or a health insurance plan. Such policies will protect you financially from any expense incurred on medical treatments or surgeries required in case of accident injuries. 

We are always exposed to road accidents or minor accidents. Statistics say that there has been a significant increase in road accidents due to uneven roads, reckless driving, etc. Despite taking all necessary safety measures, we must also insure ourselves by purchasing an accident insurance plan to deal with an unfortunate event. 

An accidental insurance policy fulfils a different criterion in your insurance portfolio. Therefore, you must understand the basic features of the same.

Essential features of an Accident Insurance plan

An accident insurance plan provides cover in case of an accident or death of the policyholder. The entire sum assured is given to the nominee, as the policyholder has stated while buying the policy. You are insured if in an accident you are faced with a permanent disability, temporary total disability, or partial disability.  

In case of an accident, the policyholder can file a claim and receive the sum assured for the necessary hospitalisation. The sum assured is disbursed according to the pre-decided ratio or percentage mentioned in the policy. 

Some accident Insurance policies can also cover the cost of dismemberment in case of burns or injury due to any fire. The cost of the entire treatment is covered if the policyholder is hurt in a fire accident. The terms and conditions of the policy will specify the kind of accidents covered or not covered under the policy. As medical costs skyrocket, particularly for critical illnesses, being backed by an adequate insurance cover can be a blessing. That’s why, today, it probably makes sense to even include a critical illness cover to your existing life or medical insurance.

Under Section 80D of the Income Tax Act, 1961, you also enjoy tax benefits on the premium paid for the accident insurance policy.

What does an accident Insurance Policy cover?

An important question that a policy buyer might have is regarding the cover in the Accident Insurance Policy. Most accidental insurance policies can be of the following types:

  1. If the policyholder has a permanent disability or lifelong impairment in case of a severe accident, the policyholder gets a specific sum assured as per the accident insurance policy.
  2. Sometimes the policyholder suffers from a temporary or a permanent partial disability. In these cases, the person is paid the sum assured as per the terms and conditions of the insurance policy.
  3. In the event of the policyholder’s death due to an accident, the entire sum assured is paid to the policyholder’s nominee after necessary documentation is completed. 

These few points are enough to emphasise the need of buying an accident insurance plan. You must research before buying one like other health insurance plans. Factors such as your income, age, family, etc., could help you make an informed decision. It is also necessary to read the terms of the policy and compare it with other policies in the market to get the best plan for yourself.

Read more :- Primary Purpose of Active Involvement in the Health and Care System