Insure Yourself Completely- Don’t Ignore Personal Accident Insurance

by Manikaran Singal on January 18, 2012 Total Views: (107)

We all know that Life is full of Uncertainties. To cover up our Financial Responsibilities we take Life Insurance and that too with proper calculation and good Sum Assured, to save our savings from medical expenditure we take health Insurance. But there is one more type which is most Ignored but most important one which is Accident and Disability Insurance. This is the cheapest Insurance policy but it gets ignored just because it does not carry any tax benefit, the reason because of which most of the Insurance policies got purchased. Where we calculate Human Life value to check how much family will need after the insured’s demise to cover up the financial responsibilities and obligations, then do you think that responsibilities will reduce if a person don’t die but gets disabled. This could be the event when a person gets dependent on his own dependents. Please Understand-“Where Medical problem can increase your expenditure, disability has dual effect as in along with increasing expenditure it will reduce your Income also. To cover up all the uncertainties relating to Accident, accident Insurance plays a Major Role.

What is Accident?

In Insurance terminology, Accident is defined as A sudden, Unforeseen and unexpected event caused by external, violent and visible means (but does not include and illness or disease) which results in Physical body Injury (but does not Include mental, nervous or emotional disorders, Depression or anxiety).

When we use the term Accident it does not always mean accident on road with some vehicle but in actual Accident can happen anywhere like if you fell down of your chair and injured your back bone or you slip in the bathroom and got some fracture etc.

Why Accident Insurance?

Accident does not always cause death but sometimes it leads to disability which could be temporary or permanent. The disability leads to reduction in your earning capacity. Sometimes disability is so severe that you might have to leave your job or at least be on leave for some months. This may put you in a financial Crunch; there could be a huge Financial Burden on your family. So to cover up all this you need Accident Insurance.

Manikaran Singal

Founder and Chief Financial Planner at Good Moneying Financial Solutions
He’s MBA ( Finance) gold medalist, a CERTIFIED FINANCIAL PLANNER and SEBI Registered Investment adviser. An ex banker , having a decade long experience in financial services industry he manages clients across the globe. He’s an active member of Financial Planners’ Guild India ( An association of practicing SEBI registered Investment advisers). He's very passionate in the financial planning space and with a view to spread financial literacy among masses he writes blog articles and also contributes and quoted in various media publications like Money control, Indian express, Business Bhaskar, Dainik Bhaskar, Money mantra magazine etc. He also delivers training on Various personal finance topics to various corporate houses. You may get in touch with him at

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{ 2 comments… read them below or add one }

Divya Sambasivan November 27, 2013 at 1:09 pm

Thanks for the useful article. Request you to write a separate detailed article on Accident Insurance vs. Accident Rider in Life Insurance, if possible.


Manikaran Singal November 28, 2013 at 7:34 am

Thanks for liking my article Divya. I will sure write on your advised article soon.


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