Personal Accident Insurance Policy

Topics: Insurance, Life insurance, Injury Pages: 16 (4998 words) Published: March 11, 2013
* Except insurance all the investment alternatives involves risk and the only rule that prevails high risk high profit, if the economic circumstances is not favoring our investment we will lose our hard earned money, further more all these investment plans are for the short period on the other hand Insurance has a long term perspective. As investment it not only covers the risk of your life rather then it also secure the future of your loved ones. * The idea is to derive two basic investments need from insurance, one is the investment that means the returns on his money. In the age of reforms we have witnessed the falling interest rates of banks, post offices and also the prices are climbing by the lift and moreover the state is economy cannot be considered as a stable economy. Every economic event is eying on the returns that you would be getting on tour investments and ready to take their share. * The other aspects of investment is assurance from the investment that this is the amount you will be getting, it is impossible to predict this uncertainty and except Insurance no other mode promises you that after certain period or maturity on long term basis. * In view of these insights insurance emerges as the combination of both investment and assurance. * Just like today, in early times if a man couldn't work because of an accident, his family would suffer. In 1694, Hugh the Elder Chamberlain proposed a policy to cover a family income in the event of an accident, and, late in the 1800s, it became a reality. Even though they called it accident insurance, it resembles today's disability income, providing payments to the injured person. In 1850, the Franklin Health Assurance Company of Massachusetts offered the first policy that covered injury from a train or steamboat accident. * Today, some insurance companies still offer accident policies for accidents on public transportation. Accident insurance for those in the later years is almost impossible to get. As people age, their bones become more brittle and a minor fall to a young person might cause death to someone older. * Personal accident insurance covers your expenses from an accident with a lump sum payment, a daily or monthly amount or a payment for loss of life from an accident. Several types of policies supplement an insurance program. * Often, accidental death and dismemberment is an inexpensive form of personal accident insurance. Other forms are similar to disability income, but they pay a cash sum when you have an injury due to an accident. There are several ways to buy personal accident insurance. Some policies only pay for specific types of accident. * There are distinct benefits to personal accident Insurance. A monthly Tax Free Income: - The monthly tax free amount is paid after one month and you choose the duration that the benefit is payable for 12, 18 or 24Months. This means that a policyholder will receive an income every month until they either return to work or the benefit period selected [12/18/24months] has elapsed. Hospital Cash cover provides a fixed amount, usually RS.4500 for every night that you spend in hospital. * Capital Benefits are provided to the policyholders who provide a lump sum depending on the nature of your injury. For example, the loss of sight, a hand, foot etc.result in a Rs. 45, 00,000 lump sum while relatively minor incidents such as broken leg result in a Rs.45,000 along with the selected monthly benefit. In Personal Accident Policies payments are limited to a maximum of 2years. * Claims can potentially last for decades although the deferred period is longer- the normal deferred period is one month with a personal accident policy. In the event of a claim the insurer effectively becomes your employer and the cover available protects your income if you are unable to work for longer than the deferred period as the result of any...
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