What is the difference between Personal Accident Insurance and Term Insurance?
Protection is necessary for everyone because uncertainties are unpredictable. Therefore, one should consider buying an insurance policy that provides several advantages. Accidents and critical illnesses not only affect the quality of life but also result in high medical expenses. However, it is necessary to know what type of insurance will suit a person’s family when it comes to accidents and terminal illnesses.
For example, when a person looks for coverage from accidents only, it is wise to choose a personal accident policy. On the other hand, a term insurance plan is completely different from others, and individuals should be aware of the same in detail.
Things to know more about Personal Accident Insurance Plan
A personal accidental insurance plan provides coverage against death or permanent disability caused by only an accident. It contributes to the income when an insured’s family suffers a loss of income due to accidents. On the other hand, it doesn’t pay a claim on death due to natural causes, and a policy buyer should think twice before choosing the plan.
Moreover, a personal accident cover is ideal for those who travel frequently or work in places that are highly prone to accidents. At the same time, individuals can take the plan to get protection from accidents on the roads. A personal accident insurance policy allows individuals to claim amounts for treatments and other medical bills for hospitalization. A policy buyer should make sure that a plan offers coverage even for a disability that will help meet essential needs.
What is a term insurance plan and its benefits?
The term insurance plan offers a death benefit to the family when the insured dies, be it due to an accident, illness, or disease. In addition, it provides several advantages to a policyholder, thereby showing ways to ensure peace of mind.
Top 6 benefits offered by the term insurance plans
- High Sum Assured
- Multiple Death Benefit Payout Options
- Critical Illness Coverage
- Increased Income Options
- Additional Riders
- Tax Benefits
1. High Sum Assured
A term insurance plan offers a high sum assured to a policyholder’s family in case of the insured’s sudden demise. Apart from that, the premiums rates are affordable, allowing a person to buy a new policy without any difficulties. Moreover, insurance companies offer high discounts to customers when they purchase a plan with a high sum assured amount.
2. Multiple Death Benefit Payout Options
The term insurance plan provides various payout options compared to a personal accident insurance policy to help manage financial obstacles. For example, it gives ways to receive the amount paid for death caused by accidents and other problems. In addition, many insurance plans even allow policyholders to get coverage for temporary and permanent disability caused by an accident. This, in turn, gives ways to manage the loss of income effectively to lead a trouble-free life.
3. Critical Illness Coverage
Critical illnesses Coverage can lead to high costs when it comes to medical care. Most insurance plans cover 34 to 40 critical illnesses allowing a policyholder’s family to gain more advantages. Under the critical illness cover, the insured gets a lump sum amount when diagnosed with a critical illness that helps in reducing stress.
4. Increased Income Options
It becomes difficult to manage expenses for a family when the head of a family dies due to illness or other factors. In such cases, a term insurance plan provides the option to receive a monthly income along with a lump sum amount. This will help plan regular expenses with ease. Some insurance providers also work closely with policyholders to provide a regular income.
5. Additional Riders
Term life insurance plans come with riders, and a policyholder can add them after doing complete research. Moreover, one can choose them at reasonable prices, which gives ways to manage expenses without hassles. Therefore, it is imperative to know more about the rider coverage in detail before choosing the benefit.
6. Tax Benefits
All term insurance plans offer tax benefits to policyholders for the premium paid towards the policy and payout amount as well, under the prevailing laws of the Income Tax Act.
Term insurance differs from personal accident insurance coverage, and customers should determine what type of plan will suit their budget and requirements. Policy buyers should compare personal accident insurance vs term insurance benefits and other things with proper attention. In addition, new policy buyers should read reviews of insurance providers online before buying a plan which will save time. In case you are looking for more information regarding personal accident insurance coverage and term insurance plan, then visit iiflinsurance.com and make the right buying decision based on your requirements.
