Difference between LIFE Insurance & Personal Accident Insurance


Life Insurance is relatively a straightforward product that pays benefits in the event of natural death or by sickness. But nowadays a lot of additions seem to have been added into the basic policy which has increased the premiums enormously, making it beyond the reach of middle and lower income people.

Some of the additions include:-

  • Critical Illness
  • Investments
  • Medical Insurance

This increases the cost significantly, basic Life Insurance should only cover loss of life, and there also cannot be other additions such as ambulance allowance, snatch theft.

Unfortunately many insurers in the country are not keen to promote basic life insurance and also agents are not very keen to promote as their commission is limited.

At the same time Life Insurance cannot be extended to include other day to day incidents like, armed robbery, trauma from snatch theft and extortion.

Personal Accident Insurance on the other had is a cheap protection plan that can be extend to include many complex extensions such as:-

  • Snatch Theft
  • Robbery & Trauma Allowance
  • Extortion
  • Loss of income due to injury

And at the same time the premiums are very low which make it affordable for lower and middle income persons. Personal Accident insurance is highly recommended to groups and the premiums can be very low, hence a lot of groups purchase Personal Accident Insurance.


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