Accidental Disability – A financial threat worse than death
Most of the life insurance policyholders in India hold a savings plan with negligible protection component. Those who know the importance of protection, hold a significant life cover, mostly from a term policy, sometimes even a savings policy. But the other forms of protection, like cover for accidental disability, critical illness are often ignored. A recent incident inspired me to think about accidental disability cover and write this article. On Mumbai Pune express way, I saw an idiot driving BMW, speeding, changing lanes randomly and abruptly in a zig zag manner. By God’s grace nothing happened on that day.
Imagine a situation where an individual met with an accident. Hospitalised for many months. He was out of danger but became permanently disabled (loss of hands, legs etc). Suddenly, his dreams and aspirations about future were completely shattered. Equally bigger worry for him would be, the financial burden. Few months hospitalisation requires lot of money. If you are an employee and covered by mediclaim policy of your company, usually the cover is limited and covers only a small portion of expenses of this scale. Then there is loss of income as the person would be out of job temporarily, in worst case, permanently. How would one handle this financial situation?
There is a cover offered by most of life insurers called Accidental Total Permanent Disability (ATPD) benefit. This is available as a rider benefit or part of main benefit in some products. One should buy this cover. Your ATPD cover should be as high as your death benefit, as it will take care if one can’t go back to work permanently. And, very important, it doesn’t cost much.
As it is mentioned in one of the advertisements, there are enough idiots freely roaming around on roads without wearing any indication of their idiocy, causing accidents. Hence, it is very important to get covered for any consequence of accident. Accidental disability is one such disastrous consequence. While we can’t do much about the suffering and grief around it, we should take care of it’s financial threat, at least.