Why Personal Accident Insurance is a Must Along With Health Insurance

In this day and age, having a plan for how to deal with a health concern is an expectation. For most people, this means getting a good Health Insurance policy that will help to protect them against the expensive costs associated with hospitalization, surgery, and treatment for emerging illnesses. But what if a medical crisis happens and there is no illness related to it, something that is sudden and unforeseen like a life-changing accident? 

This is where the safety net of Health Insurance can provide a challenge because now there is a gap in coverage, a gap that can only be recognized and subsequently filled with a specific Personal Accident Insurance policy. Relying solely on health coverage without precautions for accident and injury is like wearing a rain jacket in a storm and forgetting to pack an umbrella; while partially protected, you are risking coverage for greater harm.

The Fundamental Difference: Sickness vs. Accident

Understanding the different types of policies is imperative for constructing a complete financial safety net.

Health insurance - This policy is meant to cover medical costs arising out of sickness and disease. It is designed to cover hospitalization, doctor's fees, medicines, and all treatments for conditions that occur over time like diabetes, cancer or surgery needs. It reimburses you for medical care; it does in a sense, compensate you for the cost of treatment.

Personal Accident Insurance - This policy is triggered by an incident that is accidental in nature. This policy does not just pay for the medical bill from the accident. It pays for the ramifications of the accident that arise above and beyond the hospital.

Benefits of Personal Accident Insurance

The Personal Accident Insurance policy has layers of protection that a Health Insurance policy lacks. The principal benefit of the policy is to provide an insured financial stability whilst the insured experiences a time of great personal upheaval: 

Accident Death Benefit: When an accidental death occurs, the policy will pay 100% of the sum assured to the Nominee. While there are no words that can convey the loss of a family member, this lump sum at least will aid in the financial life of the family, in particular, to cover living expenses, secure loans and future needs such as an education for children. 

Permanent Total Disability (PTD): When you suffer an accident that results in a Permanent Total Disability (I.e loss of limb(s), eyesight, paralysis), the policy will pay 100% of the sum assured. This money will be used to support your long-term care needs, or home modification (to assist with functional transfers), or to replace lost future income. It is important to note that health insurance does not cover any of these real costs. 

Permanent Partial Disablement (PPD): When you suffer an accident that results in the loss of a part of the body or function, (i.e. loss of a finger, hearing from one ear). You will be paid a percentage of the sum assured in accordance with the loss in that function. 

A Powerful Duo: Personal Accident with Health Insurance

Let’s look at a situation: you have a serious bike accident. 

• Health Insurance: It pays your hospital bills, surgery, ICU bill, and medication until you are discharged. 
• Personal Accident Insurance: It collects benefits for your weekly income loss while you recover and are unable to work. If the accident necessitated amputation of your leg, it pays you a sizable lump sum (e.g., losing a limb may pay 50-75% of sum assured) to assist your new adapted lifestyle and loss of future income. 

The role of the Health Insurance policy is to ensure the hospital is paid, and the Personal Accident Insurance policy is to ensure your family and future are taken care of.

Conclusion 

Acquiring Health Insurance is an act of responsibility. But to be adequately equipped for life's unknowns, you should also know how to reinforce your defenses. Personal Accident Insurance isn't an irrelevant expense; it is an affordable and sensible supplement that adds a valuable level of protection for your income and assets vs. the unknowns of accidents. 

For a low premium, it provides a high-sum assured payout vs. accidents unpredictability. Personal Accident and Health Insurance together in the overall jigsaw of a financial plan both can complement each other to arrive at a complete picture of protection. Whether it be an accident or illness, you can rest assured your health, and your wealth are still protected.