Tips On Choosing The Right Personal Accident Policy For Your Needs

shutterstock_31212103Accidents happen when you least expect it and this is the main reason why having a personal accident policy is very important. This type of policy will provide you with funds for all your financial needs until you recover from your accident. However unlike ordinary life insurance policies you will not get compensated if the cause of your injury or death is brought about by natural causes. Another thing to keep in mind is that if you willingly put yourself at risk and you get injured you will lose your ability to make financial claims.

What makes a good personal accident policy?

Every client has specific needs and you must make sure that you pick a personal accident plan that is tailored for your needs. Below are some of the factors you need to consider when looking for the right personal accident policy.

#1 Coverage and Compensation Amount

A good policy is something that can adequately cover you and your family. It needs to provide you with hospitalization benefits as well as full coverage for all of your medical expenses. It should also provide additional benefits like disability and death compensation. Your policy needs to cover all the types of accidents that you are most likely to face at the office, at home and just about anywhere. You should also pay attention to the amount of compensation. The amount is most likely to depend on the level of risks and the size of your family. Ask your policy provider how much you can claim. The amount that you will get will cover for your major expenses while you are still recovering so make sure it is more than enough to help you and your family.

#2 Exclusions

It is also of utmost importance to read exclusion clauses. Most people ignore exclusions and limitations and this brings up almost 90% of rejected claims and unwanted dispute cases. Below are some of the most common exclusions:

  • You are not eligible for this insurance if you are over 75 years old.
  • This policy will be void if you drive under the influence of drugs and/or alcohol.
  • Accidents caused by extreme sports like Sky Diving, White Water Rafting, Mountain Climbing and others can also void this policy.
  • Self-Inflicted Injuries, Willingly putting yourself in harm’s way and Suicide.
  • Individuals that suffer from terminal illnesses like AIDS, Ebola Hemorrhagic Fever, Pancreatic Cancer, Etc.

These events will forfeit all of your benefits and you will not be eligible for any claims so always read and understand the exclusion clauses.

#3 Benefits

The main reason why you’re getting a personal accident policy is to provide yourself and your family with the right amount of financial coverage in case you get injured or die due to an accident. There is an equivalent amount of compensation for certain types of injuries and accidents. You need to familiarize yourself with the amount that you can claim in case an accident occurs. Some policy providers can provide full coverage from hospitalization down to cash reimbursements. Short-term and long-term disability coverage is also important because when a person gets injured he won’t be able to work and this means he cannot generate income for his family until he fully recovers and if he gets severely injured he won’t be able to work for the rest of his life. Always check if your policy provider can provide you with 100% or 50% of the sum insured to ensure that you will be properly compensated.

#4 Beneficiaries

When the policy holder dies the person nominated as beneficiary will receive all the benefits from the insurance plan. That person should be aware that he is listed as the beneficiary in order to claim the benefits without any hassles. Anyone can nominate a person as his beneficiary as long as he is 18 years old and above. The nomination process takes place at the time you apply for your personal accident policy but if needed you can go through the nomination at a later time, a witness who is 18 years old or above needs to sign the nomination form as well.

The things listed above are just some of the important factors you should look out for when looking for the best accident insurance policy. To learn more about this topic, check out some of our personal accident insurance articles.

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