Take out life or accident insurance? Normally there is a tendency to identify and confuse both products, but the truth is that their coverages are different and complement each other. We explain the similarities and differences between the two.
Take out life or accident insurance? We tell you what they look like and what they don’t. Photo: iStock
When the halfway point of life is over, it is difficult not to think about the future of the family when the person who supports it financially is missing. If you also practice a risky profession or it is necessary to expose yourself to many hours on the road to get to the workplace, it is common to consider what will happen to the people you love most if one day something unforeseen happens.
It is impossible to control what will happen, but steps can be taken to protect the tomorrow of loved ones. It is about avoiding financial difficulties in the event of the death or disability of the person who carries the weight of the family economy.
In these cases, is it better to take out life or accident insurance?
Many people confuse both products and believe that it is the same insurance. Although they have similarities, their coverages are different and rather complement each other. In both cases, the physical integrity of the insured and his most precious possession, life, are protected, but in a different way.
Why take out life or accident insurance?
Life insurance is usually contracted so that the family does not suffer economic shortages in the event that their main economic support suffers a disability or dies as a result of any circumstance: accident, natural death, or illness, among other causes.
Accident insurance, for its part, covers the loss of life or disability that is the result of an accident -whether traffic, work, etc.- and the expenses derived from it.
Once the purpose of both insurances has been clarified, we will now list their similarities and differences.
Similarities to take into account when hiring life or accident insurance
Both life insurance and accident insurance offer coverage in the event of death or disability due to an accident that makes it impossible to carry out any type of paid professional activity. If professional disability coverage has been contracted, which is optional, and the policyholder suffers an accident that prevents him from continuing to work in his current profession, he would also receive compensation with both policies.
life insurance vs. accident insurance
So far the similarities between the two. Let’s analyze their differences:
Partial disability: although both insurance policies offer absolute permanent disability, only accident insurance can also cover partial permanent disability.
Compensation is calculated depending on the insured capital, with scales depending on the mishap suffered. Thus, according to the contingency, the percentage specified in the scale is applied to the capital insured in the policy.
Death or disability caused by any cause is only covered by life insurance. Accident insurance only provides this coverage when death or disability is due to an accident.
However, life insurance also covers death due to illness and virtually any circumstance that results in death.
What happens in the event of a stroke or heart attack?
Certain accident insurance also offers coverage for death or disability due to stroke or heart attack. It must be taken into account that both ailments have become the main cause of death at work. In fact, 46.8% of fatal occupational accidents were due to this cause last year, according to data from the Ministry of Labor.
Accident insurance is the only one that can include other guarantees such as health care, hospital transfer, and recovery after suffering an accident.
Instead, life insurance may include other additional guarantees such as the management of procedures for death due to any cause, including suicide from the first year, or a free personal assistance service in the event of hospitalization or immobilization in residence for a certain period of time due to illness or accident.
As far as prices are concerned, the accident insurance premium is much cheaper since it only covers contingencies if an accident occurs.
The life insurance premium is calculated according to factors such as the insured’s age and health status. On the other hand, accident insurance takes into account the profession and activities carried out by the insured for the calculation of the premium.
What insurance to hire?
Having specified these similarities and differences, is it better to take out life or accident insurance?
Hiring life or accident insurance will depend on the money you want to invest annually or monthly, the needs of each family, and the risk to which the person who financially supports the family unit is subjected. Many families choose to hire both to complement their coverage. In this way, both compensations protect you and your loved ones against any misfortune that endangers the economic stability of the home.
Now with your Caja Rural, you can take advantage of the Enjoy second mortgage Insurance Plan. In addition to grouping the different policies and dividing their payment into 12 monthly installments without additional costs, it allows you to access exclusive advantages. Among them, you are being able to count on a legal adviser for labor, consumer issues, or any other aspect that worries you.
If you want more information about the coverage of both insurances, you can go to your Caja Rural office and request information without obligation. You can also request information in the comments of this entry.
