Most of the consumers get confused when it comes to buying term insurance or personal accident cover. Therefore, this is important for the individuals to be clear on the benefits of both the options so as to make an informed decision. This article will talk about the difference between the two and how to choose one that will actually suit your requirements.
First of all, you need to be clear on the purpose of buying insurance. The main objective of buying insurance is to ensure the financial security of your family. Life is unpredictable and anything can happen at any time.
Personal Accident Cover
It is seen that most of the consumers are busy investing in life insurance policies or health insurance policies for numerous reasons. On the other hand, they forget to remember the importance of personal accident cover.
On one hand, life insurance policies come forward to rescue your family on financial matters in case of your (the policyholder’s) unfortunate death; whereas health insurance policies provide you and your family members against those massive hospitals bills.
However, people do not think about the accidental injury which causes the policyholder to stay back in the house. Let’s try to understand the meaning of personal accident cover.
The insurance of a personal accident covers unfortunate events or any fatal accident, which restricts the policyholder from executing daily activities. On a simpler note, the personal accident cover provides the comprehensive coverage.
If a fatal accident leads to paralysing the only earning member of a family, it will eventually worsen the financial condition of the family. It doesn’t matter, whether the policyholder is an executive or salaried person, the personal accident insurance will cover her/him in the event of an emergency. Without the personal accident cover, it may be tough for your family to cope-up with the financial burden.
Term Life Insurance
Have you ever given a thought to the idea what would happen to our family, if something happens to you? The good thing is, you don’t have to think twice about this issue if you have already bought a term insurance plan. This is because the primary objective of a term insurance plan is to secure you and your family against hard times.
It is important for you to understand the meaning of term insurance. Term insurance is a form of life insurance that you can buy for a fixed tenure. In this scenario, an insured person pay the premium as per the frequency was chosen for a definite period of time. Furthermore, the death benefits are provided to the nominee, if the insured or the policyholder dies during the tenure of the policy.
Again, most of the consumers commit the mistake of not informing the policy details to their family members. And, when the actual time comes to be benefited from the policy pay-out, the family members won’t have the least idea about the term policy and would be ultimately deprived of the benefits.
Buying term life insurance is considered a wise move as it will rescue the family members from the financial burden when the only earning member of the family dies.
Difference Between the Term Insurance & Personal Accident
The most important thing that every policyholder should know that the personal accident cover offers the coverage for death and in case of loss of two eyes, one limb, loss of two limbs, permanent disability caused due to the accidents. The personal accident does not cover the death due to natural reasons.
Though there are different factors to consider while buying a personal accident cover, the age of the applicant is the most crucial factor which determines their premium amount.
Check the following companies term insurance plans: