Debunking 3 Common Myths About Personal Accident Cover

When you're going about your life, you probably aren't thinking about encountering an accident — let alone how you'd recover financially. While it's human nature to avoid thinking about worst-case scenarios, proactively protecting yourself against risks doesn't mean living your life in fear. Personal Accident Insurance from 1st for Women can protect you financially in case of an accident. However, before you commit to a policy, it helps to know the reality of Personal Accident and Injury Insurance. Discover more as 1st for Women uncovers four common myths about Personal Accident Insurance cover that you may not know are false.

What is a Personal Accident, and how does cover work?

A personal accident refers to an unforeseen event causing bodily injury, disability, or death to an individual. It typically involves slips, falls, or injuries sustained from vehicle accidents. Individuals may purchase a Personal Accident policy to protect them against such unforeseen events. Although there are different definitions between insurers, most insurance companies define Personal Accident Cover as a form of financial protection that you pay monthly in exchange for compensation for the fallout of injury, hospitalisation, disability or death resulting from an accident. It usually takes the form of a predetermined, fixed lump sum payout. It can cover accidents like trips and falls, contact crimes, drowning and most vehicle accidents. Like most forms of insurance, it usually excludes incidents where you were intoxicated, deliberately harmed yourself or broke the law. Check your Personal Accident policy to understand the exclusions more clearly. 

Personal Accident Cover is a value-added product, which means that you can add it to an existing primary insurance cover. While it could be added to many different insurance offerings, an example of an application that would benefit South Africans would be adding it to your Car Insurance in case you were hurt during a car accident.

Common personal accident myths 

Knowing common beliefs concerning Personal Accident and Injury Insurance could help you determine the level of coverage you need and show you why you need it in the first place. Here are four misconceptions you should know about.

1. Myth #1: Medical aid and Personal Accident Insurance are the same

Medical aid and Personal Accident Insurance[1] cover are complementary, not identical. Medical aid[1] will cover certain predetermined costs after an accident, limited to your medical treatment and recovery, but it won't cover you in the case of death. Personal Accident Insurance cover will pay out a lump sum in the event of an accident for you to spend as you choose. 

Consider this example: Personal trainer Priya is driving back from a late-night session with an athlete client when a drunk driver hits her car, shattering her leg. Her medical aid covers the cost of rushing her to the hospital for emergency surgery and pays for the months of rehabilitation she needs to learn to walk again. Her Personal Accident Insurance cover pays her a lump sum, which she uses to cover the loss of income she experiences from being unable to work for months. This allows her to pay for costs like her home loan bond, groceries and her son's school fees while she recovers.

2. Myth #3: Personal Accident and Injury Insurance is only suitable for high-risk people 

You may think you don't need insurance because you live a sedentary lifestyle and are unlikely to get into a dangerous situation. Accidents can happen to anyone at any time and location! You could require extensive downtime to recover from an injury, which could keep you from working and leave you with bills to pay. 

3. Myth #4. Personal Accident Cover is limited to medical expenses only

If you are injured or pass away in an accident, you and your family may face more costs than just medical treatment. With medical costs as high as they are, many people focus on hospital bills and forget that there are many others that you'd need to pay — or leave for your family to pay when they're grieving you. For example, if you're permanently disabled — even if you can keep working — you may need to purchase mobility aids to allow you to function as normal or modify your home to accommodate your new limitations or specifications. Personal Accident and Injury Insurance will cover these costs.

Get a Personal Accident Insurance quote

While you can't get a warning about an accident, you can protect yourself from the fallout if it should happen. With the right insurance, you can protect yourself from the costs of an accident so you can get back to living the life you deserve with minimal disruption. 1st For Women can offer you a Personal Accident policy that covers you. Get a Personal Accident Quote and discover how we can assist you.

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Sources:

[1] Medical Schemes Councsil: Schemes vs Insurance 

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.