Being the proud owner of no less than five policies (my insurance wall against any potential misfortune), why on earth should I pick up yet another bill for PA insurance? Would I be nuts to yet spend another dollar on such a foggy product such as the Personal Accident Insurance (PA)?
I decided to quiz my friend Janice, who happens to be a PA claims expert, working at a large insurance company and asked her for example about the payout from an accidental death event. She explained that the payout in cases of accidental death goes a long way to help prevent dependents from slipping into prolonged financial hardship.
Read on my Q&A with Janice and find out why I think PA Insurance is important.
PA compliments medical insurance
Up and until this conversation I was unaware that our typical medical insurance (Singaporeans should have their basic Medishield Life plan or enhanced shield plan from any private life insurer if upgraded) does not cover for outpatient expenses. That’s right, a Medisave-approved integrated shield plan is designed mainly to cover inpatient expenses during your hospital stay. However, one day if I were to sustain some injuries (e.g. a cut or sprain) and seek treatment without any need for hospitalisation, a PA insurance policy could respond in this situation.
What about partial disability?
Another thought-provoking question I had in mind when challenging Janice more about Personal Accident (PA) Insurance. My existing life insurance policies cover only Total and Permanent Disability. That reality dawns upon me to figure out which part of my life insurance policy is going to cover me against partial disability (whether permanent or temporary)? And to my surprise, the answer is none. What am I going to do when my monthly income plunges from S$5,000 to S$2,000? Any accidental injury to me could be potentially costly if my earning capacity was to be permanently downgraded.
Can you cover yourself for infectious diseases?
Janice asked me “Are you also aware that a PA insurance policy can cover certain Infectious Diseases?” I cannot help recalling some familiar names like “Severe Acute Respiratory Syndrome (SARS)”, “Hand, Foot, Mouth Disease (HFMD)” and “Avian Influenza or ‘Bird Flu’”. But the more recent names like “Middle East Respiratory Syndrome (MERS)” and “Zika” would probably resonate more with the general public.
What other payouts are covered by a PA policy?
Is that all? Many PA insurance policies allow treatment expenses from licensed Chinese Physicians (Traditional Chinese Medicine or TCM), Acupuncturists, Bonesetters and Chiropractors subject to a limit. Food poisoning can happen to anyone even when high hygiene standards are observed. It is comforting to know that such a risk can be covered. And with increasing threats engineered by terrorists around the world, which authority can reassure us that we would be shielded (for sure) against such harm? Yes, it is about “Terrorism coverage”.
Accidents are bound to happen…
Some accidents happen purely because of our carelessness or from others. But other accidents flashing across daily news headlines continue to shock our readers in disbelief. Can we really write off accidents everywhere around us?
I suppose having one less shot of Starbucks Coffee per week should not be too painful for me to sacrifice in return to finance a Personal Accident Plan.
Check out all the policies available and how they differ in coverage and pricing. Set your own preferences and make an educated decision on which one to buy.