- Definition of Term Insurance
- Definition of Personal Accidental Insurance
- Differences Between Insurances
- FAQs
Insurance is significant to shelter owners from financial debt in case of an accident. However, finding an appropriate insurance plan as per the requirement, can be a daunting task for many. To make navigation through this complex landscape easy, it is necessary to learn about the basic insurance types; the term plan and accidental. That said, term and accidental insurance are the most common types of insurance plans that are often confused with each other.
For your convenience, we have elaborated on term plan vs accidental insurance in detail.
Term Insurance vs Personal Accident Insurance
The term plan or accidental insurance both are designed to provide financial support to the owner after an accident. However, the coverage and financial aid offered by both policies vary.
Here are the definitions of term and accidental insurance elaborating on each insurance type in detail.
What is the Term Insurance
Term insurance is exempted from maturity, and only offers financial coverage in case of the policyholder’s demise. That said, the premiums of these insurances are less, contrary to other types of insurance. The premium can be paid in instalments, adding more convenience for the policyholders.
Few insurance providers offer payback in term insurance plans, but it varies from provider to provider. Therefore, when buying car insurance in Dubai or any other Emirate, it is necessary to inquire about the payback offered by the provider.
What is Personal Accident Insurance
Personal accident insurance offers financial coverage in case of a policyholder’s demise or disability due to an accident. Whether the disability is minor or major, any loss of income is catered by the plan.
In personal accident insurance, an amount is secured for the spouses, in case of the policyholder’s demise. Whereas, in the case of disability, the same amount is provided to the policyholder.
If you are confused about how personal accident insurance will overlap with your car insurance, read through our blog on car insurance FAQs.
Difference Between Term and Accidental Life Insurance
Now that you are aware of the definitions, let’s move towards the term plan vs accidental insurance.
Coverage Offered
Accidental insurance offers financial coverage in case of death or disability of the policyholder. It offers complete coverage of medical bills and loss of income due to an accident.
On the contrary, the term insurance only provides financial coverage in case of the policyholder’s demise. For the rest, the policy will not provide any sort of coverage.
Sum Assured
The sum assured is the amount decided to be given to policyholders or spouses. In term insurance, the amount can only be transferred to the spouses. However, accidental insurance allows policyholders to utilise the amount, if disabled after an accident. Here is how you can file a car insurance claim in UAE.
Causes of Death
The term insurance is flexible when it comes to causes of death. The insurance plan provides coverage whether the death is caused by an accident or due to natural reasons. In comparison, accidental insurance only provides coverage if death is caused due to an accident.
Premium Cost
The premium of accidental insurance is higher as it offers maturity. However, the premium of term insurance is lower and flexible payment methods are offered by the policy providers.
FAQs
Which types of deaths are not covered by term insurance?
Deaths caused by suicide, driving under the influence, self-inflicted injuries, participation in extreme sports, illegal activity and natural calamity are not covered by term insurance.
Is accidental and car insurance the same?
No, term and accidental insurance are types of personal insurance that often overlap with car insurance during coverage.
What is the age limit of personal and term insurance plans?
The age limit of term and personal insurance plans is from 18 years to 65 years.
This was all about term plan vs accidental insurance. Accidental and term insurance plans overlap with car insurance when it comes to the coverage of individuals. Having car insurance secures the vehicle; whereas personal insurance aids in an individual’s coverage. This is why, whether you are buying a used car for sale in the UAE or opting for a new one, having a valid insurance plan is necessary to avoid future hassle.
Besides, if you are a teenager, avail of car insurance for young drivers in the UAE.
Stay tuned to dubizzle’s auto blog for more information on car insurance plans.
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