If you’re looking at what different kinds of insurance are available to you, you may have come across these two types: personal accident insurance and life insurance. Hang on, I hear you say. Aren’t these just the same thing?
Unfortunately not. There are key differences between both types of insurance, and in this article we help you break down the most major ones.
Cost
Life insurance is usually significantly more expensive than personal accident insurance. They are more expensive because they cover your entire life, while personal accident insurance is considered on a case-by-case basis.
Personal accident insurance is less expensive because it only covers accidents, and provides a lump sum payout that you can use. This is more affordable if you are younger, but prices will grow the older you get, and are more likely to get into accidents.
Natural vs Accidental death
Personal accident insurance will cover you in the case of an accidental death, but not if the death was natural. Life insurance, on the other hand, covers both natural and accidental death, to some extent.
Another major difference between personal accident insurance and life insurance is that in case of death, life insurance does provide your financial dependents with death benefits. Because personal accident insurance usually pays out a lump sum, it’s not guaranteed that your dependents will be covered entirely after your death.
Take a look at this video to see how personal accident insurance and life insurance measure up against each other.
Tax deductibles?
If you have life insurance, you’ll most likely be entitled to some tax benefits as well! However, this is not the case for personal accident insurance.
In the event that you’re really concerned about accidents in your line of work, it may be worth adding on a personal accident insurance policy on top of life insurance in order to get yourself covered from all angles.
If you’re interested in checking out what other benefits you can get from personal accident insurance, go over to https://www.aig.my/personal/personal-accident-insurance and take a look at the comprehensive benefits on offer.
