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Life is full of uncertainties. One may fall ill anytime, or a medical emergency may interrupt our life. The body is harmed, and sudden financial constraints put an extra burden. Considering the unpredictability one might encounter, the thought of meeting an accident and not having financial assistance is the worst-case scenario. Buying health insurance plans is a way to combat such conditions. You can prepare yourself and your beloved family to face the challenges you might witness along life's journey. When there are multiple policies to cater to the various needs of an individual, a personal accident policy covers you for a specific injury owing to an accident.
Overview of Health Insurance
Healthcare is getting more expensive every day. Buying a health insurance plan offers financial security by covering your medical and surgical expenses. Types of health insurance are individual, family floater, senior citizens, critical illness, and group health insurance.
You must consider the Sum Insured, in-network hospitals, exclusions, add-on benefits, and more. There are several benefits of securing your family under health insurance, out of which a few are mentioned below:
Benefits of Health Insurance
- Financial Security Net: You can deal with rising medical costs and safeguard your finances when you have a health insurance policy. From covering the treatment costs and room rent to daycare & IPD treatment and more, the insurance coverage will handle all the expenses for you.
- Tax Benefits: According to Section 80D, you can receive tax deductions from the premiums.
- Wellness Programs: Gym membership, exercise classes, dietary advice- all these wellness programs can help you improve your health.
- Lucrative Rewards: For claim-free years, your insurance company might reward you with no-claim bonuses (NCB) which might reduce your premium amount.
Overview of Personal Accident Insurance
PA insurance, or Personal Accident Insurance, compensates the insurer in case of any injury, disability, or death caused by accidental events. It is a lifesaver policy that covers limb or general disability or death caused by an accident. It can be broadly classified as Group and Individual Personal Accident Insurance.
Benefits of Personal Accident Insurance
- Death Coverage: In case of accidental death, the insured's family receives an amount (per the policy).
- Hospitalisation expenses: IPD and Day Care expenses are also covered under a personal accident insurance policy.
- Disability Coverage: The insurance company pays an amount in case of a permanent disability so the family can cope with the loss.
- Child’s Education Coverage: Some insurance companies also cover the education cost of the deceased’s child.
>>Read More: What Disablements Are Covered in Health Insurance Plans?
Key Differences between Personal Accident Insurance and Health Insurance
Personal accident insurance comes to the rescue during an accident, whereas health insurance gives you complete coverage during your hospitalization. Let’s understand what personal accident and health insurance are all about in this blog.
| Parameter | Personal Accident Insurance | Health Insurance |
|---|---|---|
| The Purpose | Coverage is offered in case of accidental death and disability | Coverage for hospitalisation due to both accidents and illnesses |
| Scope of Coverage | lump sum amount to be paid for diagnostic tests, hospitalization due to an accident | Covers expenses related hospitalisation, ambulance charges, day-care expenses, domiciliary treatment and many more |
| Pre/Post-Hospitalisation Cover | No | Yes |
| Disability Coverage | Yes, up to the defined limit | No |
| Death Coverage | Death benefit is given to the family in case of the accidental demise of the insured | No |
| Option to buy Add-ons | No | Yes |
| Tax Benefit | No | Yes |
| Coverage for Critical Illness | No | Yes, as an add-on |
| Coverage against collisions | Full coverage | No |
| Sum Insured | Rs 10 lakh-3 Cr | Rs 5 lakh-6 Cr |
| Waiting period | NA | 24-36 months |
Which one should you choose, Health Insurance or Personal Accident Policy?
Health insurance should be your choice if you need coverage for general medical expenses, doctor visits, hospitalisation, and surgery. On the other hand, personal accident insurance covers hospitalisation expenses for medical treatment, injuries, and wounds. So, if you want a policy dedicated to accident coverage only, then personal accident insurance policy should be chosen.
Conclusion
Both the insurance apparently fits different needs and gives you coverage. It is vital to buy personal accident insurance and health insurance to be fully covered when you need either of these to come to your rescue. Paying diligence to the finer details of these insurances ensures that you and your family benefit in the long run. You and your loved ones will have the resources and assistance you require during sudden health issues related to either accident or sickness.
However, it is absolutely essential to understand how important it is to look after yourself and your family in such unpredictable times. Care Health Insurance understands the need of the hour, and hence it offers both Personal Accident Insurance and Health Insurance to its customers. We want to stand by your side as and when you need us the most. We are known for our 24800+ cashless healthcare providers across the globe. Get your quote now to buy personal accident and health insurance for yourself.
>> Also Read Personal Accident Insurance: Know Your Cover Better
Disclaimer: This blog is for reference purposes only. Please read your policy document carefully to know more.
