Raghunath Kyoshyari

Life unpredictable, and health hazards and life-threatening accidents might occur at any time. These uncertainties lead to a financial crisis if you are the only providing member in the family. So, having an insurance plan to offer monetary help to your family in your absence is important. However, when you buy an insurance plan, you must need clarification on personal accident cover and life insurance.   Personal Accident Vs. Life Insurance - Definition A Personal Accident insurance plan is a policy that offers coverage against accidents that may cause permanent or partial disability, death, or any bodily injury. It also covers you if there is no income flow due to the injury caused.   Life insurance policy helps you keep your financial stability in check during your lifetime and beyond. We can say that life insurance is a contract between the life insurance company and you where the insurance company promises to pay a guaranteed sum when you pass away or after the maturity period.     Personal Accident Cover Vs. Life Insurance - Benefits If you are hospitalised due to an accident, there will be no source of income but the rising medical expenses, bills, and bank EMIs. You can buy a personal accident insurance plan to deal with such uncertainties. Below are some of the benefits of a Personal Accident Plan - No requirement for medical tests and documentation Substantial coverage at a low premium Global coverage Family security 24*7 support Child education benefit Legal and funeral expenses covered Available with customised plans Easy claim process   On the other hand, life insurance offers the following benefits - Paying off your home mortgages and loans such as - student loans, credit cards, car loans, etc. (depending on the terms and conditions of the policy) Income replacement Helping the ageing parents Tax benefits under section 80D of the Income Tax Act You can buy additional coverage with a life insurance plan.   Personal Accident Insurance Vs. Life Insurance - Inclusion and Exclusions Before buying a policy, always know and understand the exclusions and the inclusions of the policy. This depends on the insurance provider. Some of the exclusion and inclusion are as follows -   Personal Accident Insurance Exclusions Inclusions Natural death Accidental death Childbirth and pregnancy related expenses Accidental dismemberment Suicide or self injures Medical expenses and hospitalisation charges Non-allopathic treatment Life support benefits Death under influence of recreational drugs Burn, broken bone, and ambulance charges Pre-existing medical condition Permanent or partial disability Death due to participation in adventures like - skydiving, scuba diving, and many more. Daily allowance   In case of life insurance, the following are the inclusions and exclusions -   Life Insurance Exclusions Inclusions Death due to narcotic consumption Death benefits if you die before the end of the policy STDs (Sexually Transmitted Diseases) such as HIV Income protection for other dependant member of the family Pre-Existing medical condition Your beneficiary gets the right to claim the entire amount. Death due to criminal activity of participating in any life threatening adventure such as skydiving, bungee jumping, scuba diving, etc.  Coverages related to bikes, cars, etc.   Personal accident insurance and life insurance are smart choices. However, there are certain things that you must understand, like - coverage, grace period, and other terms and conditions. This is because the plan and policy vary depending on the insurance company. Always talk to your insurance provider before purchasing a plan. Also, check and compare several plans and read the policy documents thoroughly to eliminate the risk of purchasing a policy with lesser coverage.