subject: Personal Accident Insurance Vs Life Insurance Comparison [print this page] Do you need personal accident insurance or life insurance? The question is one picking up a lot of steam, especially as economic times are tough all over. On the one hand, it doesn't cost as much to carry personal accident insurance as it does a whole life insurance policy. In any way, it is also far more limiting in what it will actually cover. That's why it is important that you understand each and every word of a thinkable policy coverage before you accept it. But are there circumstances where a personal accident policy can be a good thing? Of course, or no one would ever want to buy it!
One of the best things about the personal accident policy is that you do not have to be dead to benefit from it. While it is comforting to realize that your family will be taken care of in the event of your death, there is still nothing too joyous about paying out monthly premiums with the full knowledge that it's wealth you personally will never see again. Personal accident insurance can be set up to pay a cash payment in the event that you are injured and disabled without work. This policy can be a great supplementation to your life insurance policy as it gives you and your family that little bit extra that you're probably going to need when times get tough.
In any way, it cannot be highlighd enough how important it is for you to fully check out the policy before you agree to it. If you dont, you could just end up paying a premium on a policy that will never stand a chance of helping you out financially when you are injured and can't work. On the other hand, the life insurance policy - at least the whole life - may not pay you for injuries, but it does build cash value, which you in turn can treat as a savings account and make withdrawals from should you ever need a little extra money.
Life insurance will also not pull any restrictions with regard to fulfillment in the event of your death. You can go by using life knowing that your loved ones will get the full amount should something ever happen to you. Term life insurance, unlike whole life, expires after a time, but it is often possible to get a lot more coverage for a much smaller premium. In any way, this type of life insurance does not build cash value.
So once you realize all the facts about the insurance policies that you are considering, you are in the position to judge for yourself which of the two is better. It's not always the same answer, so keep that in mind.
by: Gen Wright
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