Despite experiencing increased empowerment across domains, women still face challenges and disparities. Issues like gender inequality, cultural stereotypes, and unequal economic avenues continue to hold them back. Something as ordinary as a savings account can be a big step towards women’s empowerment. A zero balance savings account provides women with an opportunity to participate in the formal economy, gain control over their finances, plan for the future and achieve decision-making power within their families and communities.
Indian women can access several savings accounts to support different financial goals, needs and preferences. Joint accounts, senior citizen accounts, salary accounts, zero-balance accounts and women’s accounts – you name it. While other savings accounts are available for both men and women, women’s savings accounts are exclusively for women.
True to their name, these accounts are designed to encourage women’s participation in the formal banking system. Specifications might vary from bank to bank, but they usually feature lower minimum balance limits, better interest rates, fee waivers, bespoke customer support, 811 Credit Card and other perks. In short, these accounts lower the entry barriers and make banking accessible, convenient, cost-effective, and rewarding for women.
Certain savings accounts for women even come with insurance benefits. For a slightly higher premium, these savings accounts extend life cover, health cover, personal accident cover and more, depending on the account. While life and health covers are important for otherwise uninsured women, do they need personal accident cover? Well, let’s discuss.
What is Personal Accident Insurance?
Accidents might occur on the road, sports field, workplace or any other location, causing injuries, disabilities and even fatalities. Personal insurance coverage provides financial support to help victims recover and deal with permanent total disability, permanent partial disability and temporary total disability. In the worst-case scenario, the victim’s family receives the compensation. Depending on the policy, the victim’s medical expenses, hospitalisation costs and emergency evacuation are typically covered.
Zero Savings Account With Personal Accident Insurance
A zero savings account with personal accident insurance has its share of pros and cons. On one hand, the account can fund your recovery and rehabilitation efforts. On the other hand, the add-on (personal accident insurance) has no cash value and limited usage. It boils down to your specific requirements and saving objectives. Confused? We are here to help you make informed decisions.
Pros:
Let’s start with the benefits of having a savings account with personal accident cover for women.
· Financial Protection:
The victim finds it tough to raise funds for hospitalisation, rehabilitation and medical expenses like surgical procedures, ambulance services, diagnostics, and follow-up treatments. The policy rider can cover all this and more to ensure complete peace of mind for victims. Also, accessing the 811 Credit Card is possible with Kotak811’s savings accounts.
· Compensation for Deaths:
The account extends financial help to the deceased woman’s legal beneficiaries. This allows her loved one to cope with the fiscal crunch, especially when the deceased woman is the sole breadwinner in the family. That’s one big reason for working women to go for these accounts.
· Disability Coverage:
If the accident leaves the woman temporarily or permanently disabled, the savings accounts with personal accident insurance can help fund her rehabilitation and other financial obligations. The compensation is subject to the nature of the disability, whether total or partial.
· No Medical Evaluations:
These accounts do not ask women to undergo medical examinations to determine eligibility. With the entry barriers lowered, they make personal accident insurance more accessible.
· Global Coverage:
Some savings accounts also offer personal accident insurance with global coverage. Whether the accident happens in India or abroad, the account holder is fully covered. Such accounts usually make sense for women with a travelling job or high-risk working environment.
Cons:
You may be eager to get hold of a savings account for women with personal accident insurance. But before signing in, knowing the cons is crucial to determine whether the account is worth it.
· Limited Coverage:
This policy covers physical injuries, disability and death due to accidents. A lot is left uncovered, such as mental conditions resulting from accidents, self-inflicted injuries, pre-existing conditions and injuries triggered again by high-risk activities and sports.
· No Cash Value:
The amount spent on maintaining these add-ons does not have any cash value. Odds are you might never need the coverage at all, which makes these accounts a mere accessory.
· The Redundancy Factor:
You might already enjoy the benefits of personal accident coverage through your health or life insurance policies.