This article is written in collaboration with AXA. All views expressed are the independent opinion of DollarsAndSense.sg
When it comes to insurance planning, private integrated shield plans, term and whole life insurances and critical illness plans tend to take up the most of our attention, and sometimes, even that of our financial advisers.
However, one affordable type of insurance plan that we shouldn’t ignore is a personal accident plan. A personal accident plan is a type of general insurance policy that provides you with financial support, via an insurance payout, in the event of an unfortunate accident. This payout made can either be in the form of a lump-sum payout, or on a reimbursement basis when expenses are incurred.
Unlike life insurance plans, coverage provided by personal accident plans are for injuries or death arising from an accident. If a person passes away because of natural causes, he or she would not be eligible for a payout from their personal accident plan. However, they would still receive a payout from their life insurance plans.
This is why personal accident plans should be seen as a useful complement to other life and/or critical illness plans, as opposed to being a substitute.
Personal accident plans are useful in protecting us in three ways.
#1 Medical Expenses Due To An Accident
Unfortunate accidents do happen in life and often, there is very little that we can do to prevent them from happening. For example, you may fall off or get hit by a personal mobility device (PMD), which is happening more often in recent times, or you could get hurt while playing sports. Should such an accident happen, we need to quickly get the right diagnosis and treatment, which can be costly.
Since we can’t totally prevent ourselves from unfortunate accidents, what we can do is to be well-prepared instead.
A personal accident plan can give you peace of mind and help prepare you financially for the costs that you may incur when these unfortunate accidents occur.
The AXA SmartPA Protect + allows you to claim accidental medical expenses up to $10,000 per accident (Platinum Plan) if you are not hospitalised and up to $20,000 if you are hospitalised. You can also claim up to $5,000 per year (Platinum Plan) for other type of treatments required such as physiotherapy, chiropractic treatment and traditional Chinese medicine (TCM).
#2 Accidental Death Due To An Accident
If death occurs, obviously there will be no need for us to have the money for ourselves. However, the payout from our personal accident plan can be very useful for our dependents, who can use the money to support the family as they gradually adjust to life without you.
For this, AXA SmartPA Protect + provides a lump-sum payout of $1,000,000 (Platinum Plan) in the event of death due to an accident.
#3 Permanent Disablement Due To An Accident
Besides death, an accident could result in permanent disablement. This could be the loss of our senses such as our sight, hearing, speech or the loss of limbs. In such unfortunate incidents, a personal accident plan will also provide us with a payout.
Besides the core benefits provided, some personal accident plans also offer optional benefits that can be included to the main plan.
For example, the AXA SmartPA Protect + allows you to opt in for an Add-on Pack, which provides you with the following additional coverage.
For more information, please refer to the AXA SmartPA Protect + product brochure.
If budget permits, we can all agree that the add-on benefits should all be included to ensure a more comprehensive personal accident plan.
For example, in the event of an accident which results in a 2-week hospitalisation, the daily cash benefit from your personal accident plan can come in very handy to cover incidental expenses.
Post-hospitalisation, healthcare assistance and recovery support in the form of doctor’s home visit and home nursing care could be required especially when one becomes immobile following a serious accident. Such services can be very costly. This is where a personal accident plan can help ease your financial stress.
Choosing The Right Levels Of Coverage
There are also 3 core plans with different level of coverage that you can choose from. The Platinum Plan provides you and your family with the highest level of coverage while the Silver Plan is the most affordable of the three plans.
However, you must be mindful that the budget which you have set aside for insurance is finite. Add-on benefits do cost more and you need to consider for yourself whether the extra premium that you will be paying is worth it for the additional benefits featured in the personal accident plan.
Extending Coverage To Our Family
Many of us buy insurance policies not just to protect ourselves but also our loved ones. This is why it’s also likely that when we are considering a personal accident plan for ourselves, chances are that we will also be on the lookout for a suitable plan for our spouse and children.
If you and/or your spouse purchase the AXA SmartPA Protect +, your children^ will automatically enjoy a free Child Cover – which gives them 20% of the coverage benefits that you are getting and also additional cover for Hand, Foot and Mouth Disease (HFMD).
If you want your child to have higher benefits, you can choose to add the Paid Child Cover, which would increase the coverage that your child is receiving from 20% to 50% of the coverage benefits that you are getting.
In addition, if both you and your spouse are covered by the same policy, you can enjoy a 10% family discount on your premiums. This means that as a family, you, your spouse and all your children can enjoy coverage from as little as $304.30 each year*.
* This assumes both spouses buy the Silver Plan (non-manual occupation) with an annual premium of $158 per adult (before GST and 10% discount) without the add-on pack.
If you are interested to buy the AXA SmartPA Protect+ plan for yourself and/or your loved ones, you can do it online via the AXA website today.
^ Your child is eligible for Child Cover under this Policy if
(a) They hold a valid Singapore identification document such as a Singapore NRIC, Dependant or Student Pass; and
(b) They are between 15 days and 18 years old (both ages inclusive) or up to 25 years old if enrolled or still studying full-time in a recognized institution of higher learning; and
(c) They are unmarried and financially dependent on You and/or Your spouse; and
(d) They are covered with at least one parent in the same policy and
(e) They are living and/or studying in Singapore, or if away from Singapore for no more than 182 days at any one time.
This is a personal accident plan underwritten by AXA Insurance Pte Ltd (“AXA”) and the benefits of the policy will only be payable upon an accident occurring. This advertisement is not a contract of insurance and not for use outside Singapore. The precise terms and conditions are specified in the policy wordings. You may wish to seek advice from an AXA intermediary before making a commitment to purchase this product. If you choose not to seek advice from an AXA intermediary, you should consider whether the product in question is suitable for you. In the event that you decide that the policy is not suitable after purchasing the policy, you may terminate the policy in accordance with the free-look provision, if any, and AXA may recover from you any expense incurred by AXA in underwriting the policy. It is usually detrimental to replace an existing personal accident policy with a new one. A penalty may be imposed for early policy termination and the new policy may cost more or have less benefits at the same cost. This product is protected up to specified limits by SDIC. This advertisement has not been reviewed by the Monetary Authority of Singapore. All information is correct as of 10 June 2019. AXA Insurance Pte Ltd. Company Reg No. 199903512M