Secrets Why We All Love Personal Accident Plans
“Insurance is boring. No one likes to talk about it. Most of the time, we only get it because the government requires it for our health or safety or our mortgage company wants to cover its asset.”
Here is the thing, even if you’re not interested in insurance, it’s crucial to your overall financial security and wealth accumulation. If you don’t mitigate your risk with adequate insurance coverage, your financial plan can go completely off track.
There was a period of time I was very irritated and turned off by articles with the mention of the word “insurance”. It all changed when my best friend got involved in a car accident. Here is the thing, being a fresh graduate, he wasn’t adequately covered by any personal accidents plans.
He was going for a family dinner in town travelling by car, but had a serious motorcar accident in the middle of the expressway which wasn’t even his fault. As a result, a hefty sum of financial bills for the ambulance and emergency treatment chalked up for his family, and debt soon accumulated for weekly physical therapy treatments needed. This incident put me into serious thinking: All it takes is just one accident to put us in huge financial trouble. While we are already worried about our injuries from accidents we can’t foresee, the least we want is to have a financial burden double that worry.
What exactly are personal accident plans?
The fact is, insurance terms are hard to understand. Working in an InsurTech firm made me realised that insurance need to be simplified. Accidental plans mainly cover your expenses incurred due to personal injury from an accident. Examples of such injury include fractures, a broken tooth or burns. Hospital stays are also covered, and may include long-term stays such as in the case of a coma. However, standard health insurance plans will not typically cover these expenses, thus getting yourself covered for personal accident plan is a no-brainer.
The cost of the policy, or premium as what the proper term is, is actually very affordable. To illustrate, for a typical 30-year-old accountant, he will need to pay about $150 for a one-year coverage of $100,000 for himself.
So what kind of plan should I get?
For a typical person in the pink of health, it is essential to get covered for medical-related services including ambulance, emergency and non-emergency care, medical exams, hospital stays, therapy, surgery and medical equipment. In addition, accidental death and permanent disability are covered for in almost all packages. Remember, in the event of an accident, it is not simply the cost of the medical treatment that will hit you. Long term stays in the hospital will drain your gold mine dry.
Things to note before buying
Firstly, check to see how long is the policy contract active for. Also, note that there are two types of limits you need to keep tabs of – the annual limit, and the lifetime limit. Both dictate how much you are entitled to claim yearly and throughout your lifetime respectively.
In some cases, the payout may be doubled or even tripled. For example, a child in an accident at school, during school activities or on a bus may get double payout, whereas the weekend soccer injury at a community centre would be subject to the normal benefit payout.
Furthermore, don’t choose a personal accident policy based on premiums alone if you don’t want to find yourself getting rejected for claims for lack of coverage. Likewise, policies with higher premiums usually cover more, but that does not necessarily mean they are what you need.
Situations where your personal accident plan does not cover
Beyond the standard coverage, the additional services covered by a policy differ greatly from one insurer to another. Truth beholds, certain accident-related events are not covered by a primary accidental policy. For example, Etiqa Insurance, which is under Maybank, covers the following events, but some policies will charge extra:
- Suffocation by Smoke, Poisonous Fumes, Gas or Drowning
- Riot, Strike, Civil Commotion
- Peace Time Reservist Training
In addition, medical insurance and personal accidents insurance are two vastly different types of plan, so don’t expect claims on something related to medical insurance if you only buy a personal accident policy. Personal accident policies pay only for events due to an accident, so an individual would not be successful in filing claims for medical expenses due to illness, just as an example.
A smarter way to get yourself protected
The traditional way of getting yourself an insurance policy would be arranging appointments with an insurance agent or advisors and sit down for a coffee chat to know more about the plans and offers through the agent you met.
However, as what our company tagline writes, “Forget Everything You Know About Buying and Managing Insurance”, the app is a very useful tool for all your insurance needs. With the vision of transferring the power back to the general public, the app helps to manage all types of insurance policies in your palm and even your family’s. It helps to consolidate and gives you a simplified overview of your insurance portfolio and the premiums you are paying for each category, allowing you to know by yourself whether you are over-paying or under-insured.
At your convenience, you can purchase policies simply by “talk” to our Artificial Intelligent Chatbot Kate, and also able to make claims directly via the app! With the free app, you can do these at your convenience, without the relentless sugar-coating of insurance agents.