Personal accident insurance generally costs less than life insurance.

The basic difference between death coverage in life insurance and personal accident insurance is that the first guarantees compensation for natural or accidental death, while this coverage in personal accident insurance, as the name says, will be paid only in the event of death from a covered personal accident.

Exactly because it has less comprehensive coverage, personal accident insurance generally costs less than life. In addition, the amount paid for personal accident insurance usually does not differentiate between young and old, while the calculation of the price of life insurance varies according to the age of the insured.

Both, however, have a common advantage. The indemnity received by family members and/or beneficiaries does not enter the inventory and is not responsible for any debts left by the insured. The indemnity amount (insured capital) is paid directly to the beneficiaries, completely exempt from taxes.

Who is recommended for personal accident insurance?

Those who work for themselves, entrepreneurs, and professionals depend on good physical conditions to carry out their activities. An accident can force them to stop working temporarily, meaning a disruption in their income.

This is a condition in which it is certainly worth having this insurance. It is also recommended for those who work with a formal contract in a company that does not provide the employee with the option to adhere to a collective personal accident policy.

A young, single person, without children, independent and in good health represents a low risk of death, due to the natural order of life. But, if you still do not have the financial security that can guarantee the payment of your expenses in case you are forced to leave work due to an accident, you will also have a good motivation to take out insurance.

The cost of personal accident insurance is one of the lowest in the market, making it possible to contract complementary coverages. Among them, the non-monthly payment of insurance, in case the insured becomes unemployed, and the payment of school fees for the insured’s children.

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