Posted on January 10, 2009 - by Adrian Khiat

Why Personal Accident Plan?

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Most people took up a Personal Accident plan via telemarketers, Credit Card complement or through their company’s corporate insurer. An adviser who do not do proper fact-finding may miss out recommending a PA plan. It is understandable that few advisers like to recommend a PA plan largely due to the low premium, low commission and the high chance of claim.

Many people do not have such a low cost policy because they did not hear about it or has misunderstood its coverage. It will be quite unfortunate if an accident strike and they are not able to claim things that are unique to a PA plan. Today, I like to share why its important to have a Personal Accident Plan.

1) Beefing up Death Coverage at low cost

• 6% of Singaporeans die of Accident in 2007. It is not a big number compared to Cancer and Heart Diseases but I believe the chance that a young man dies via accident is higher compared to sickness.
• And it is usually that young man have a higher dependency needs when they are likely to be under-insured.

2) Covering Accidental Permanent Disablement

• A person’s life have a certain value attached which are determined by his dependency needs. Likewise, a person’s hand, leg or eyes should have a value attached as well.
• If a person loses a leg, eye or finger permanently, he is likely not able to claim for any of his policy.
• The chance that a healthy person loses a finger, hand or eye is largely via accident.
• Example. Full Sum Assured $100,000. Loss of one arm = 50%, Loss of one finger = 8% x $100k.
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