When it comes to your family’s financial security, a personal accident insurance policy can help you effectively. This insurance policy is designed to provide the policyholder and the family with monetary cover in death or permanent/temporary disability due to an accident. The rising popularity of this particular policy has caused many people to opt for the policy. So, many insurance providers are offering the cover in different varieties. It is important to know which policy is right for your needs. Before buying the cover, here is a list of things to consider before purchasing a personal accident policy.
Choose your plan carefully.
When choosing a personal accident plan, you need to decide if you want an individual or family plan. In the case of the latter, the plan provides coverage for your entire family. The best policy, in this case, will be the one that offers covers for accidents from regular activities.
A higher premium may guarantee you a bigger cover, but that also means you may end up paying more in premium than the actual risk of an accident. That said, a low premium for a minimal cover is not enough either. You have to find the right balance between the value of the premium and the cover.
Check the history of your insurer.
A personal accident insurance policy is as good as the insurer who is offering it. When buying any insurance plan, you must learn about the insurance company’s history and market reputation. Find an insurer with the best claim settlement record.
Check the coverage
The insurance policy comes with different types of coverages. You need to learn about the coverages before buying the policy to make sure of adequate financial security. A good personal accident plan should cover death, loss of eyesight, disability of limbs, permanent disability, and temporary disability.
Opt for add-ons
Personal accident insurance policies offer different add-ons that you can buy to enhance your covers for additional premiums. The most popular benefits are child education benefits, daily cash during hospitalization, ambulance fees, and hospitalization expenses. You can read the policy document to know more about these riders.
Find out the exclusions.
Every insurance policy comes with exclusions, health insurance, life insurance, or a personal accident plan. Before buying a policy, you must read the legal documents thoroughly to discover what events are not covered. For example, not all policies offer cover for accidents that occur when you are traveling abroad. However, such a cover might be important to you if you are a regular international traveler.
Learn about the claim process
If you meet with an accident, you or your family members have 30-days to inform the insurer to make a claim. You need to submit a claim form along with a copy of the First Information Report (FIR) and other required documents as mentioned in your policy. You need to understand the requirements to experience a smooth claim settlement process. A personal accident policy can be quite helpful in case of an unfortunate event. However, you need to make sure that you buy the right policy for your specific needs.