For a nominal premium, a Pure Term Insurance policy protects the family of the Life Assured from financial crisis in case the Life Assured is no more. There are two more policies which covers the financial risks an individual or a family faces in case of an accident or critical illness, wherein, the cost involved is not only very high but will be spread over a longer period.
Personal Accident Policies: Personal accident policies are issued by General Insurance companies for a period of one year and the premiums are common for all age groups. There will be NO Medical exam for these policies since only Death or Disablement (permanent or partial) are covered. In most of the accidents, the individual involved either suffers a minor or a major disablement such as a fracture of a limb or even a spinal injury, which forces them to stay at home for a period of 3 months to 6 months. In severe accidents, this may even go up to one year – during which period the individual suffers loss of income in addition to the regular medical expenses. A good personal accident policy for a sum insured of Rs.25 lakhs and above, comes to the rescue in such a situation.
A sample illustration of personal accident policy with approx. premiums:
|Type of Coverage|
|Death due to accident or|
Permanent Total Disablement
|Rs. 25 lakhs||Rs. 50 lakhs|
|Temporary Total Disablement||Rs.5000 per week up to 50 weeks||Rs.10,000 per week up to 50 weeks|
|Modification of Home or Vehicle due to accident|
|Medical Expenses in case of accident|
|Eligibility||10 times of Annual Income
|Approx. premium - Occupation 1||Rs. 2,900 per year||Rs. 5,800 per year|
|Approx. premium - Occupation 2||Rs. 4,400 per year||Rs. 8,600 per year|
Critical Illness Policies:
Critical Illness policies will pay the insured person the sum insured as a Lump sum amount for the identified critical illness, Medical events or surgical procedures. Some of them are listed below:
- Kidney failure requiring regular dialysis
- Multiple sclerosis with persisting symptoms
- First Heart attack, Cancer, COMA and End stage liver disease of specified severity
- Major organ/bone marrow transplant
- Open Heart replacement or repair of Heart valve
- Pulmonary artery graft surgery, Major burns, Open chest CABG & Aorta Graft surgery
Sample Premiums for Critical Illness Policies:
|Age||5 lakhs||10 lakhs||15 lakhs|
The coverage varies with the Insurance Company and with the survival period (60 days, 90 days or 6 months from the occurrence of the event or accident).