Life is unpredictable, and unexpected events such as accidents can bring about substantial financial, emotional, physical, and psychological challenges for you and your loved ones. Term insurance and accident insurance are products designed to support you through difficult times and offer peace of mind. We'll examine the difference between term insurance and accident insurance to help you make an informed decision tailored to your needs.
Difference Between Term Insurance and Personal Accident Insurance
There exists a significant difference between personal accident and term insurance. The two are compared below:
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Aspects
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Term Insurance
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Personal Accident Insurance
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Tenure
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Between 5 to 40 years
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1 year
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Renewal
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No need
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Subject to annual renewal
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Coverage Amount
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Maximum 20 times your annual income
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Maximum 10 times your yearly income
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Disability Cover
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The basic term plan does not offer disability benefits; policyholders can take insurance riders for the same
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It covers disability and accidental death.
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Risk Factor
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The basic term plan covers natural death only
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PAI covers the risk of accidental death and disability
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Compensation
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Beneficiary gets claim amount in the event of death
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Compensation includes coverage for medical expenses in the event of accidental injury or death
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Conclusion
Terms and conditions of term and personal accident insurance can vary from insurer to insurer. Browse comparison websites for the best health insurance policies, consult an insurance advisor, and make an informed decision to secure yourself against financial shocks during the unplanned events of your life. Get insured today for a safe tomorrow.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended as a substitute for professional advice, diagnosis, or treatment. Please consult your general physician or another certified medical professional for any questions regarding a medical condition. Relying on any information provided in this blog is solely at your own risk, and ICICI Lombard is not responsible for any effects or consequences resulting from the use of the information shared.