All You Need To Know About Personal Accident Insurance In Singapore
No matter how we may avoid them, accidents can and do happen to anyone, anytime and anywhere. It doesn’t matter whether you’re operating heavy machinery, hiking in Tibet, taking MRT, or even taking a shower. And if you’re uninsured against injury or death from accidents, it could be disastrous for your finances. It only takes one accident to leave you with hefty medical bills that can quickly eat up your life savings.
As the saying goes, life is full of uncertainties and since there isn’t much you can do at the hand of Fate, being prepared is the most sensible solution to take to protect yourself and your loved ones from the consequences of an accident.
What is Personal Accident Insurance?
Personal accident insurance provides you and your family with the necessary financial support in the event you suffer an injury, disability, or untimely death from an accident. It can range from fractures and a broken tooth to burns. Hospital stays are also covered, and may include long-term stays such as in the case of a coma. Although it sounds very similar to a life insurance policy, there are 2 key differences.
Firstly, personal accident insurance is meant to cover death directly resulting from accidents, not death from natural causes, while life insurance covers for both.
Secondly, unlike other life insurance policies that provide savings/ investment benefits on top of any death benefits, personal accident insurance does not offer such benefits.
What are covered by Personal Accident Insurance?
Personal accident insurance covers a variety of incidents with varying amount of payouts which is determined by the extent of the seriousness of the accident.
Here are 5 most common types of incidents that are covered.
Death benefits offered by insurers come with a time limit, which means that you must die within a certain time frame before your beneficiaries can make a claim.
Many insurers specify that you must perish within a 12-month period from the date of an accident for your dependents to receive the full insurance payout. However, before that, insurers will determine whether an accident was the ultimate cause of your death.
Permanent Total Disability
If you become permanently and “completely” disabled as a result of an accident, you’ll receive a lump sum payment. Like accidental death, there’s also a time limit involved, typically 12 months from the date of the accident, whereby you’ll receive benefits if you become completely disabled within that period.
Insurers define total disability as a condition that prevents you from working any kind of job, even something as simple as a desk clerk or data entry.
For example, if you’re a pilot involved in a career ending accident that diminishes your eyesight, but doesn’t eliminate it, you wouldn’t qualify for permanent total disability because you’re still able to perform other jobs.
To illustrate, insurers consider the following as permanent total disabilities: Loss of sight in both eyes; loss of both hands or feet; loss of any combination of any 2 from above; loss of both hearing and speech.
Your personal accident insurance covers some of the medical expenses you’ll need to pay after an accident. However, there are limits to how much the insurer will pay and how long it will provide medical expense benefits. These limitations vary by insurer, so be sure to factor medical expense coverage when making a choice.
In general, insurers cover the following expenses: The cost of medical treatment such as surgery or remedial care for accidents only, which means Illnesses such as heart attack will not be covered.
Daily Hospital Cash
Unlike medical expense coverage, this benefit gives you a fixed daily payout (for example, S$100 a day) up to a certain number of days for inpatient care.
Of course, to qualify, you must have been sent to the hospital as a result of an accident and not illness or pre-existing condition.
Medical Evacuation/ Return Home
Having an accident overseas while on holiday or business trip can be an expensive event, especially if the place lacks the medical facilities or expertise to treat serious injuries. Some insurance policies will pay the cost of moving you from your location to the closest medical facility that can treat your condition.
This is extremely useful if you frequently visit remote destinations on holiday or business as the cost of emergency air transportation can easily cost tens of thousands of dollars.
Additionally, if you need to be moved back to Singapore for additional treatment, that’s covered too. On top of that, if you pass away overseas, the insurer will cover the expense of returning your body back to Singapore.
What to look out for when buying Personal Accident plans in Singapore?
So, after knowing so much about personal accident insurance, what do you need to look out for when purchasing such a policy? Read on.
Firstly, whose covered? Check to see if traveling partners, spouses and children are covered. Are children included or covered up to a certain age? If you buy a family plan, will an unmarried partner be covered?
Secondly, do you travel overseas frequently? If you do, make sure the coverage includes emergency assistance services.
Lastly, the cheapest policy isn’t always the best. Don’t choose a personal accident insurance policy based on premiums alone if you don’t want to find yourself under-insured when making a claim.
To conclude, it’s extremely important to protect you and your family’s well-being with comprehensive coverage against accident-incurred injuries. With a wide range of personal accident plans in Singapore, it is possible to tailor a plan just for you.
You can check your insurance coverage anytime and anywhere on your phone with PolicyPal. Follow us on Facebook to keep updated with other avenues in which you can make sure you and your family are adequately protected.