Understanding The Differences Between Health Insurance And Personal Accident Insurance

When buying insurance, it is crucial to choose the right type of policy. For example, some people may know about health insurance and believe it is enough for them, and not know much about what personal accident cover is. Others may think only personal accident cover is important for them or have the compulsory version of it.

What is Health Insurance?

Healthcare may not be the most affordable sector for consumers. With the cost of healthcare, including drugs, treatments, surgeries, and more, increasing year on year, it can be difficult for the average consumer to address their health concerns, and possibly even more troublesome to face health emergencies. Even if they create savings to face such instances, it may not be enough. Without dedicated savings, it may be even more difficult. Health insurance is an option that can help you stay financially prepared to deal with any such situations. When you purchase health insurance, you agree to pay a monthly premium to an insurance company. In return, the insurance company agrees to pay for a portion of your medical expenses, up to a certain limit.* There are a number of different health insurance policies available in India, each with its own set of benefits and features. When choosing a health insurance policy, it is important to consider your individual needs and circumstances.

What is Personal Accident Cover?

Accidents are usually associated with vehicles or high-risk situations. However, accidents can happen to anyone. As a result, one may sustain serious damage to the physical self or worse. If one has encountered a serious accident, one may require hospitalisation to help deal with the damage and recover. If an accident results in death, it may bring grief and mourning to the family. One aspect that may go unnoticed is that the family may also face financial troubles after a death, especially if the person who passed was a primary earner. If you worry about such possibilities, especially because you work in high-risk situations, you may want to consider getting a personal accident cover. If you own a vehicle, such as a car or a two-wheeler, it is possible that you may be having personal accident coverage as a part of your motor policy.* A  compulsory personal accident cover is provided with a motor insurance plan if you do not have an existing personal accident plan. Even if you don’t, standalone personal accident insurance plans can be purchased. With some health insurance policies as well as some life insurance plans, some possibilities of accidents are covered. However, these inclusions may be optional, may add to your premium cost, and may not offer sufficient coverage.* With a standalone personal accident plan or one bought alongside a motor policy, you can ensure that you get the host of benefits that the policy has to offer.

Differences Between Health Insurance and Personal Accident Insurance

Here is a look at some of the primary differences between a health insurance plan and a personal accident cover.

·         Coverage*

A personal accident cover is a specific type of policy. The coverage is limited to either medical treatments or hospitalisations after an accident, accidental permanent disability, or accidental death. On the other hand, a health insurance plan covers a range of ailments and conditions and is not limited to hospitalisations resulting from accidents.

·         Premiums

Since the scope of health insurance plans is wider as compared to personal accident plans, the premiums may also be slightly higher. You can use a health insurance premium calculator to understand the price you may have to pay to get the desired policy. The premiums depend on various factors, such as the type of policy chosen, your age, medical history, and more.*

·         Waiting period

Health policies come with a waiting period. This is a period that starts when you buy the policy and ends when you are allowed to make claims. Usually, personal accident plans do not have a waiting period. You may be able to make claims soon after you get the policy. However, it is best to check for any applicable waiting period when you make the policy purchase.*^ ^Claims are subject to terms and conditions set forth under health insurance policy. You need not make a choice between personal accident cover and a health insurance plan. It is ideal to assess your needs and make the choice you deem suitable. For some people, it may be best to choose both these plans. Health insurance as well as personal accident cover may help you protect your loved ones against financial stress.*   *Standard T&C Apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.