by Today, there is a great concern about the future and security in the most diverse aspects, isn’t it?! Insurance exists precisely for that: to guarantee more protection for the insured and their family members.
However, as there are different types of insurance, there are many doubts that end up making people confused. An example of this is life insurance and personal accident insurance.
Although they are very similar, since both have death as coverage and the choice of their beneficiaries, there are differences and different coverage. In this post, we will explain each of them, their coverage and the main differences. Keep reading and check it out!
What is life insurance?
It is a policy whose main objective is to pay compensation to the beneficiaries, as a result of the death of the insured. However, each insurance has its clauses that must be carefully analyzed before signing the contract — since today we have a multitude of insurers that can guarantee more benefits than others. Insurance companies, despite having the same objective, differ from others by their clauses and exceptions. However, most of them cover the following items:
- natural or accidental death;
- funeral assistance;
- medical expenses;
- serious diseases;
- functional or work disability;
- among others.
The fact is that people see life insurance as protection for their family, not limited to the death of the insured, but also targeting other important aspects, such as disability.
What are the features of life insurance?
The main feature of life insurance is the possibility of being combined with other types and including clauses that end up making this option very advantageous for the insured. Another particularity of life insurance, which benefits the insured, is that it is completely exempt from Income Tax.
It is worth mentioning that it is not considered inheritance. This is because we know that inheritance can be used to pay off debts left by the deceased. Hence the importance of being clear that the insurance does not provide this type of coverage.
Which is the best option: individual or collective insurance?
Another factor that must be observed when choosing insurance is its modality, which can be individual or collective. Each of them has its own characteristics with advantages and disadvantages, which must be carefully analyzed. The individual, as the name implies, has to do with the individual characteristics of the insured, it is customizable. In other words, it has to do with age, lifestyle, profession, risk factors and more advantageous coverage than the collective.
The collective, in turn, is made by a company that offers its employees a benefit, as they pay less for it. In fact, it is much more affordable when compared to the individual option, since the contract is signed with a group of people who belong to a company or association, for example. However, the collective differs from the individual as it already has a predefined model, preventing any type of customization, such as including a cover, for example.
What is Personal Accident Insurance?
Personal accident insurance covers death and permanent disability, which may be total or partial caused by an accident. If the injuries caused by the accident require medical treatment, this type of insurance also provides coverage. In other words, to characterize the claim covered, it is necessary that an accident occurs and that it causes damage. That is, this insurance only covers damage from accidents and not from natural causes.
How can we characterize personal accidents?
In fact, there has always been some difficulty in distinguishing a death resulting from an accident from one caused by natural causes. More precisely, when it refers to the consequences arising from health problems , or the risk of exposure of the insured.
However, due to the numerous cases that were observed, it was defined that personal accidents are those that occur on a specific date, externally and suddenly, and that are unpredictable and violent – leading to death or serious injuries to the insured. An example of this would be a car accident that can be fatal or cause serious injury to the insured.
How are injuries included in personal accident insurance characterized?
Depending on the insurance company and the coverage that was contracted, they cover medical expenses resulting from accidents covered by this type of insurance. However, there is a limitation: some accidents are not covered. It is necessary that partial or permanent disability be verified . For the avoidance of doubt, the risks excluded from personal accident insurance must be included in the contract, which are:
- risky act taken by the insured, without plausible justification;
- competitions in cars or any other type of vehicle;
- driving without proper documentation and license;
- organ donations that go wrong and result in death;
- wars and terrorist acts;
- typhoons, cyclones, tidal waves, hurricanes and other natural phenomena;
- use of nuclear material, which can lead to sudden death, such as explosions or slow death, from exposure to radiation;
- among others.
Therefore, when taking out personal accident insurance, it is very important to also pay attention to the exclusions contained in the conditions that encompass the contract.
