Be it an accident or a health emergency, both situations are stressful for the victim and their families. In such a case, the first priority becomes getting proper treatment instead of worrying about the monetary aspect of the situation. It is the reason why one should be prepared for such unfortunate events. But how?
Getting insurance is one of the best ways to prepare for these serious conditions. Two main insurance plans can be useful in case of a mishap: health and accident insurance. However, different situations demand different policies. So, which insurance plan should you opt for? Let's know about these two plans through this blog before deciding which one is right for you.
What is Health Insurance?
Health insurance plans are designed to cover medical expenses and protect the policyholder from financial burdens during any health emergency. These plans go beyond just hospitalisation costs. Policyholders can get benefits like coverage for ambulance charges, diagnostic tests, and even pre and post-hospitalisation expenses.
Moreover, health insurance plans also offer cashless health insurance facilities. So, a person can receive treatment without paying any charges upfront at the network hospitals. Insurers also check a person's medical history as well as their family's medical history before deciding the premium of the insurance plan.
But does health insurance cover accidents? It mainly depends on the policy one selects. Hence, reviewing the insurance policy's exclusion list is important, as some conditions and treatments may not be covered under health insurance.
What is Personal Accident Insurance?
Personal accident insurance provides financial support for medical and hospital expenses that are caused due to accidents. Unlike health insurance, a personal accident policy focuses only on accidental injuries. So, it covers expenses like emergency treatment, fractures, and rehabilitation costs. Moreover, a personal accident cover policy, along with standalone plans like disability compensation or death coverage, ensures financial security for the victim and their family.
But, now the question arises: "Which is a better plan- Health insurance or Personal accident policy?" So, let's compare the two.
Health Insurance vs Accident Insurance
While both accident and medical insurance provide financial security in case of an emergency, it is important to know what each one has to offer. So, here are some points that will help you understand the coverage of both insurance plans.
- Purpose of Health and Accident Insurance
The key difference between health insurance and personal accident insurance lies in their purpose. Health insurance covers expenses like hospitalisation charges, medical treatment, and surgeries that arise due to illness or injuries. The beneficiary can also buy an add-on along with the health insurance plan to enhance the coverage.
In contrast, the coverage of a personal accident policy focuses mainly on hospitalisation due to accidents. Moreover, it can also provide compensation for partial or permanent disabilities, which makes it a useful addition to health insurance policies.
- Pre and Post Hospitalisation Coverage
Health insurance plans cover expenses before and after hospitalisation. Hence, one doesn't have to pay for diagnostic tests, doctor visits, and follow-up treatment for the same illness according to the plan that they choose. However, the duration for which these pre and post-hospitalisation charges are covered can vary. Moreover, some plans even offer cashless health insurance as well.
A personal accident policy focuses on hospitalisation expenses directly related to injuries caused by an accident. So, this policy does not offer any pre or post-hospitalisation coverage.
- Death Coverage
A major distinction between health insurance and accident insurance is death coverage. Health insurance does not provide compensation in case of death as it only focuses on medical and hospitalisation costs. Typically, death benefits are a part of life insurance.
However, a personal accident policy also covers death and ensures that the full sum, which was assured, is given to the pre-appointed nominee. This feature makes personal accident cover policy important for financial security in case of an accident.
- Coverage of Disabilities
Accidents can cause severe injuries that may result in temporary or permanent disabilities. So, a personal accident insurance plan offers financial protection in such cases. It also helps the victim with their income and medical costs during the recovery. Health insurance, on the other hand, does not typically cover disability-related expenses.
Choosing between health insurance and personal accident insurance depends on your needs. While health insurance is necessary for covering your illnesses, surgeries, and hospitalisation costs, a personal accident policy provides financial security for accidental injuries, disabilities, or death. Ideally, combining both plans ensures you are prepared for medical emergencies and unexpected accidents. So, understanding these differences helps to make informed decisions. However, you must assess your risks and budgets to select the right combination.
