WHAT is accident insurance?
Also called accident, disability and dismemberment (ADD) insurance, accident insurance is an insurance policy that will pay you a lump sum following an accident, based on your level of disability. An accident is defined as an unexpected and unintentional event leading to an injury. The indemnity paid by the insurer will be based on a table of disabilities that was agreed upon signing the insurance contract. The greater your disability, the more the payout you will get, the maximum amount being the sum insured when signing the policy documents.
HOW does this coverage combine with other life insurance benefits like term life or critical illness?
It is complementary, although some benefits will be covered twice. Accident insurance will pay the full sum insured in case of accidental death, same as term life insurance. However, term life insurance will not pay anything in case of partial disability and accident insurance will not cover death following a disease.
As for critical illness, some of the major disabilities (like loss of limb) will be covered by critical illness as well as accidental injury if this follows an accident. However, the accident coverage will include many other medical problems due to an accident that won’t be covered by a critical illness insurance, like:
It is important to review each product and have a global vision to maximize the coverage.
How to buy accident insurance?
Accident insurance can be purchased as a standalone policy or as a rider of term life insurance. The policy is usually for a minimum of one year, with renewal under the same conditions unless you have made claims during the year. Make sure you discuss with a professional intermediary like us to understand the complementarity with international health insurance, term life and other products, and to avoid any gaps or overlaps.