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This is the Difference between Personal Accident and Life Insurance

Posted At November 19th, 2019

This is the Difference between Personal Accident and Life Insurance

Many people are often confused about what is the difference between personal accident insurance and life insurance. Between the two insurance products, often people are in a dilemma to choose which product is the most appropriate and can provide optimal benefits when they need it.

They also do not know whether having one of these types of insurance is sufficient for optimal self-protection or not.

This article will discuss the basic differences between the two insurance so that it can help you make the best decision before buying the right insurance.

What is Life Insurance?

Life insurance is an insurance product that provides life protection by providing compensation benefits in the event of a death or cash value benefit if there is no death in a person for a certain period of time or for life.

Life insurance is an insurance product that is quite well known because this product is very simple and offers sufficient cash insurance benefits with affordable premiums.

What is Personal Accident Insurance?

Personal accident insurance is a specific type of insurance designed to provide compensation if a person experiences death, permanent disability, or temporary disability as well as reimbursing medical care and/or medical costs that are directly caused by an accident.

Although this insurance is not very popular, it is worth considering in the insurance portfolio to protect it from accidents even small incidents.

The advantage of a very affordable premium and adequate coverage value makes this insurance must be owned without having to think long.

What's The Difference?

 

Life Insurance

Personal Accident Insurance

Death guarantee

Guarantees all causes of death (natural, sick, or accidental)

Just guarantee death by accident

Other compensation

Only death compensation

There is compensation for disability and medical treatment due to accidents

Underwriting determinants of premiums

Age level

Types of job risks

Value of compensation for death

Maximum 100% of sum insured

Can reach 200% of the sum insured

Waiting period for claim

There is a waiting period for pre-existing conditions.

There's no waiting period


Which One Should You Buy?

Ideally, life insurance is the first priority that you must have as a life and financial protection for yourself and loved ones around you. However, if you want more comprehensive protection then the option of buying personal accident insurance, in addition, is a very wise decision.

Personal accident insurance can take the form of protection more complete, especially to face the risk of loss of income due to disability or medical care costs arising from accidents.

Your life insurance clearly does not guarantee that.

Personal accident insurance will be a more optimal role if your work is included in the type of work that is very high risk, such as working in a mining area, on an offshore platform, or maybe as a pilot.

Believe me, there will always be good reasons why you should have life insurance and personal accident.


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Topics Article

insurance life protection