One cannot afford to be financially challenged in today’s world. In Singapore, it is mandatory and enforced by law to have insurance on your vehicle. To be able to drive, you require at least a third party insurance which will cover any damage repair of the third party only. But what about personal physical injuries, your life and your loved ones? All it takes is one huge slip-up on the road and you could end up fighting for your last dime.
Safeguarding your wealth is undoubtedly just as imperative as accruing it. If you cannot save and store from your income, then even the slightest glitch can upset your apple cart called life. Insurance remains a vital aspect of any wealth strategy. Inept planning in just one of these facets could prove to be damaging to your prosperity as it will take one misfortune to throw you in a vicious cycle of pecuniary damage. In spite of this, the general trend is to try to hold back when it comes to accident insurance.
You can register for an accident insurance on your own, and you also have the choice to supplement it with an Health insurance for your child.
Why do you need Accident Insurance?
It is indispensable to have a liability insurance in the event of a mishap. Basic liability insurance will cover injury to third party, including both physical injury and property destruction as well as legal bills. If you wish to cover things like car damage or theft, that is totally up to you.
Get your accident insurance in place and you can have peace of mind knowing that in the event of unfortunate contingency, you need not worry about arranging the required funds.
Accident Insurance has a lot of advantages (though we pray that you and your family will never need to resort to them) including securing you and your loved ones’ financial future and to aid you on the path to recovery from any grave accidental injury.
Types of Accident Insurance:
- Accidental Death & Dismemberment Insurance: Accident-only disability cover is generally considered a low-end option. Some of its features are a tad different from the other types of accident indemnity. Instead of being a lump amount, the advantage is a having an insurance payment per week or month.
- Comprehensive Worksite Accident Insurance: This will usually get covered by the organization you work for.
- Travel Accident Insurance: Contrary to what the name suggests, travel accident insurance is quite specific. If an accident occurs during business travel, it might be covered by the company. In other cases, if you have a travel insurance, it should cover any expense borne due to accidents occurring during the journey.
- Blanket Accident Insurance: To insure yourself mainly against accidents occurring while participating in a sport, blanket accident cover is the best option.
- Student Accident Insurance: Student accident cover can be said as an extension of blanket accident insurance.
- Accident Only Disability Insurance: Here the insurance amount given will be based on how the accident has affected the injured person’s job performance.
- Catastrophic Accident Insurance: Catastrophic accident coverage is a kind of accident insurance policy that has gained limelight in the last decade. It covers only grave accidents that entail loss of limb, or sight, speech and/or hearing. Naturally, catastrophic accident policies come with huge face amounts as these occurrences are quite uncommon.
What does personal accident insurance cover?
- Accidental death: In case an accident leads to demise of the insured, the insurance company will pay the lump sum amount to the beneficiary. However, insurers will validate the claim only if the demise of the insured occurs within a specified time period, starting from the date of the accident.
- Permanent disability: If an accident leaves you permanently disabled and unfit for any kind of job, you can claim benefits under this plan. As in the case of accidental death, there’s a time frame involved here too.
- Hospitalisation expenses: Accidents often lead to expensive medical treatments and surgeries. Before you even realize it, your entire life savings are gone into paying those medical bills. If you do not have savings, the situation gets even worse. But that’s where this plan comes to help. It covers your medical bills while you are unable to earn due to your injury or disability. However, there is always a limit to how much you can claim from the insurer. Different insurers have set different limits for medical expense coverage. Make sure you understand your policy before you buy it.
- Daily fixed payout during hospitalisation: Under this type of coverage, the insurer gives you a fixed daily amount for a certain number of days for your medical treatment. Remember: it’s not the same as medical expense coverage where the payout depends on your actual treatment expenses.
- Medical evacuation: There is nothing worse than meeting with an accident at a remote location where there is no medical facility. Such risks should not be ignored, especially if you are someone who travels frequently to such locations. The medical evacuation/return home benefit helps cover that risk. This coverage pays for the cost of moving you to the nearest medical facility where you can get your treatment.
Who needs to buy personal accident insurance?
As suggested earlier, it’s always beneficial to have personal accident insurance, irrespective of your age, sex, or occupation. However, there are certain cases where it becomes even more important to have this coverage due to the high level of occupational risk involved. Such cases include:
- Workers employed in sectors like manufacturing and construction, where the risk of personal injuries is always high
- Sports and adventure enthusiasts
- People who have dependent spouse, parents, or children
Things to consider before buying a personal accident cover in Singapore
If you have made up your mind to get personal accident cover, you are one step closer to ensuring a better future for yourself and for your family. Before you go ahead, always ask your insurer about the scope of your policy. Not every policy covers your spouse and children. If you want them covered too, go for the family plan.
If your job involves frequent travelling to remote locations, make sure your policy provides medical evacuation coverage. Additionally, it’s always convenient to work with insurance companies that provide 24/7 assistance. Last, but not the least, choose a plan that best covers your personal accident cover requirements.
Should you go for personal accident cover as an add-on or as a standalone policy?
That’s your choice. You can either get this cover as a rider with your life insurance policy or you can go for a standalone accident insurance policy. You can even combine it with your car insurance policy. However, personal accident insurance as a rider may not offer the same benefits as a standalone policy. Make sure you understand the terms and benefits before you make a choice.
List of major banks and insurance companies providing Accident Insurance in Singapore:
- AIA Insurance
- AXA Insurance
- AVIVA Insurance
- Great Eastern Life
- ETIQA Insurance
- HSBC Insurance
- Manulife Insurance
- NTUC Income Insurance
- Prudential Insurance
- Tokio Marine Insurance
- QBE Insurance
- Liberty Insurance
- AIG Insurance
- Tenet Sompo Insurance
Choosing the right accident insurance is tricky, but you really do not want to over spend when it comes to insurance. There are scores who spend as high as one fourth of their earnings on insurance just as there are many who do not have a single policy to their name. These days it is so easy to get information about various insurance providers, products and their seasonal offers via comparison websites. Compare and choose wisely. Your wealth will be grateful.