Do not forget to buy personal accident insurance cover

Deepak YohannanMyinsuranceclub.comAt 28, Roy was amongst the most meticulous planner that I had met. He had a good career going for him, completing the picture were his beautiful wife and a little daughter, who he adored. Being a family man, he had taken a family floater health insurance cover for his family and a term insurance plan. Armed with both these financial products, he thought that he had managed to secure his family's future even if something untoward were to happen to him. However, all is not hunky dory in the cycle of life as Roy meets with an unfortunate accident and his injuries leaves him incapacitated for at least next 24 months. While his health insurance took care of a chunk of his hospital expenses, for the rest, he had to dig into his rainy day savings. The ordeal did not end here, with the sole breadwinner unable to work, the going got tough. His term insurance didn’t help either in this situation. Suddenly reality struck hard and Roy asked himself, if he could have done anything to avoid the grim state-of-affairs. A simple answer to this question would be personal accident insurance. While term insurance takes care of the financial needs of your family in case of your demise, it does not render any financial assistance in case the insured is disabled permanently or partially. According to the Centre of Science and Environment (CSE), 58 people get injured every hour in road related accidents in India, thus, getting a personal accident cover is imperative, if not for ourselves then for the sake of our families. What does a personal accident cover offer? Accidental death benefit: Death arising out of an accident entitles the nominee to get 100% of the sum assured as per the personal accident cover. Total permanent disability benefit: In such a scenario, the nominee is entitled to receive the total sum assured by the policy. However, some insurers also pay upto 125% of the sum assured. Permanent partial disability benefit: The insured is entitled to a percentage of sum assured for a specific time or as a one-time lump sum payments. Temporary partial benefit: In the event of policyholder being totally disabled for a few months, thereby restricting his ability to work and earn a living, the insured person will receive a percentage of sum assured or a fixed periodic payment for few weeks. Additional features: Rising competition in the insurance sector due to FDI has translated into gains for us - ‘the end user’. In addition to the traditional benefits, your personal accident cover also offers certain benefits, which were not offered earlier. They are: a. Child education benefits b. Double indemnity for death/ disability while traveling in public transport c. Legal and education benefits d. Injury arising due to acts relating to terrorismWhat should you buy?It is best to buy your personal accident cover as stand-alone policy and not with a rider as it may not cover your loss of income. Buying a family inclusive personal accidental cover is not advisable either because the cover for your wife and child will not be adequate due to the restrictions imposed. You need not worry, the premium for a personal accident cover is lower than term plans. This is also the reason that your agent has never insisted you to buy the policy because their commissions are negligible. Another important factor to note is that the premium for a personal accident cover is not determined by age but your profession. A young army officer will have a higher premium to pay than a 50 year-old painter. Some of the popular personal accident plans that you can choose from are: