What is the use of Personal Accident plan?

Wish to find out more about the usefulness of a personal accident plan and whether there is a need for it.

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Nigel Tan

24 Feb 2021

Executive Senior Financial Planner at Great Eastern Life

Hi anon,

personally I find the medical reimbursement portion of the PA plan the most useful. In fact, that is pretty much where a majority of claims are paid out.

Medical reimbursement is useful for many oupatient benefits that could not be claimed by hospitalisation. Depending on the type of PA policy you purchased, here are some examples of what is covered:

Burns

Assault (including rape & murder)

Fractures / dislocations

Choking from swalloing of food or foreign objects

Broken tooth from accidental bites into solid foods (eg. Chicken bone)

Road traffic accidents (unless law is violated eg. Drinkdriving/ speeding)

Food poisoning/ dengue fever

Traditional chinese medicine related costs

Animal/ insect bites

X-ray/ MRI scans due to accident

Ultimately, accidental nature must be qualified by being Sudden, Unforeseen & Involuntary.

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Nathaniel

24 Feb 2021

Personal Accident (PA) Insurance provides you with a cash benefit if you encounter a serious accident or death. The purpose is to provide you with a substantial payout to pay for various expenses in the event that you are unable to support yourself (or have diminished earning capacity) following a serious accident.

For instance, let's say you had a PA plan with a payout of $500,000 for Total Permanent Disability. If you were hit by a PMD on the pavement, and became completely paralysed, this $500,000 payout would be immensely helpful in defraying all kinds of expenses - hospital fees, caregiver fees, home renovation fees, wheelchair costs, general living expenses, etc.

Here's some links to popular PA plans:

Etiqa PA (can buy online): https://www.tiq.com.sg/product/safety/

Aviva PA: https://www.aviva.com.sg/en/insurance/personal-...

NTUC PA: https://www.income.com.sg/health-and-personal-a...

FWD PA (can buy online instantly): https://www.fwd.com.sg/personal-accident-insurance

Prudential: https://www.prudential.com.sg/products/protecti...

MSIG: https://www.msig.com.sg/insurance/personal-insu...

Also, some companies provide what's known as group personal accident insurance. This is a benefit for company staff.

Hope you find the above useful.

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