A personal accident policy not only protects your family in the event of an accidental death much like a life insurance policy, but also covers disablement leading to loss of earning capacity, at low premiums.
You can plan to have a Personal Accident Policy in combination with your Term Plan for a Life cover , what must be noted is that premium amounts for Personal Accident Policy are much lower then the Term Plan premiums ( Term Plans are the cheapest Life insurance covers )
A Personal Accident Policy covers various kind of accident disabilities and may also have a clause to pay the insured person a fixed amount for every non-working day, due to a accident
The premium of a Personal Accident policy is usually decided by the age of the person and more importantly by his occupation , which are categoried based on risk of meeting with an accident, on job.
These are the different types of disabilities covered :
Death,Permanent Total Disablement,Permanent Partial Disablement,Temporary Total Disablement and also loss of limb and eyes .
What must be noted is that , there are many Insurers especially private insurers who do not cover "Temporary Total Disablement ", this is serious draw back .
In case of "Temporary Total Disablement " the level of disability reflects an injury that has rendered the person completely unable to perform any job on a temporary basis. But the person is expected to make a full recovery and return to work.
So if you are buying a Personal Accident policy make sure that "Temporary Total Disablement ", is covered.
Image : FreeDigitalPhotos.net,Photographer: renjith krishnan
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