May 28, 2023

The Trend Pear

Health Blog

5 Steps to Purchase the Best Personal Accident Insurance Policy

Life is unpredictable, and accidents can occur to anyone at any time. Protect yourself and your family with a personal accident cover that offers lump-sum compensation during an emergency.

An accident leaves a family shattered emotionally, physically, and financially. Very often, most families end up draining their lifelong savings on medical treatments for the injured member.

This is where a personal accident policy acts as a saviour. It helps families deal with financial needs during times of emergency.

The plan offers lump-sum compensation that can be used to meet all medical expenditures. Alternatively, the assured death benefit can also be used to provide for your family’s day-to-day needs, if you were to meet with an untimely death due to an accident.

Now that you’re aware of the importance of personal accident insurance, let’s take a look at the steps involved in purchasing it.

Step 1: Check the Coverage Offered

Most accident insurance plans offer coverage for death and disability of the insured in an accident. Here a disability can be – loss of limbs, loss of eyesight, or other permanent and total disability.

Look for plans that offer extended coverage like:

  • The education cost for the dependent children, after the demise of the insured
  • Coverage for loss of employment of the insured individual
  • Ambulance benefit, hospitalisation benefit, etc.

Go through the list of available benefits and choose a plan that meets the current and future requirements of your family.

Step 2: Decide on the Required Sum Assured

It’s one of the most important factors while choosing a personal insurance plan. The sum assured is the amount your family members receive, if an unfortunate accident were to happen to you and you’re disabled or meet a fatal death.

Some personal accident plans offer increasing sum assured with every renewal, with no increase in premiums. This way, you get increased coverage as the years roll by.

Make sure to choose a large sum assured that will help your family take care of all their day-to-day expenses, pay off debts and other financial requirements, in your absence.

Step 3: Choose the Right Insurer

Some of the top features to look for in an insurer are seamless online policy purchases with minimal documentation, lifelong renewability, and quick processing of claims.

Ideally, the best insurance company is the one that makes it easy for your family to file and receive the claim amount during a crisis. Make sure to compare and evaluate insurers based on their CSR (Claim Settlement Ratios) and the time taken to complete a claim settlement.

Some insurers offer cashless treatment facility at network hospitals. Make sure to go through the list of network hospitals to see if this facility is available at hospitals in your city.

Step 4: Look for Policies that offer the Best Value for the Premium Paid

Very often, most people make the mistake of choosing an insurance plan that charges the lowest premium. A low-cost policy with minimum coverage is not the ideal choice as it may not fulfil your family’s requirements in an emergency.

A plan that offers extended coverage and benefits at an affordable premium is the right choice.

Step 5: Read the Policy Document Carefully and Complete the Purchase

Compare policies from various insurers online, using the four criteria listed above. Once, you have zeroed in on the right personal accident insurance policy that meets your family’s requirements, download the policy wording and proposal form online.

Go through the document carefully to understand the inclusions and exclusions. Then, fill up the policy proposal form, provide the required documents, pay the premium, and finish the purchase process.

A Personal Accident Policy is a Safety Net for you and your Family

With medical costs increasing across the country, having a personal accident policy is a must for all. It’s the best safety net that protects your family from a financial meltdown during unforeseen circumstances.

Use the steps listed above and find the best personal accident plan that works for you and your family.