Why Personal Accident (PA) Insurance Matters
6 October 2023 | 15 mins read
In a fast-paced world, personal accident insurance (PA) often remains misunderstood or underestimated. The common misconception is that it’s only for high-risk professions like construction or manufacturing. However, the truth is, accidents can strike anyone, anytime, and anywhere, even in seemingly safe office environments. Surprising office accident statistics reveal that accidents are not confined to industrial settings, underscoring the crucial importance of personal accident insurance in today’s uncertain times.
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In 2021, there were a staggering 100 fatal accidents and a concerning 7,184 injuries* attributed to traffic accidents alone. While some accidents may not lead to hospitalization, they can still result in unexpected medical expenses, such as outpatient treatments or the need for mobility aids like crutches. An eye-opening fact is that standard health insurance plans often don’t cover these specific costs, bringing into focus the pivotal role of personal accident insurance in comprehensive financial planning.
Understanding Personal Accident Insurance:
PA is a specialized insurance product meticulously designed to provide a financial safety net in the event of accidental death or permanent disablement. It distinguishes itself by offering a lump-sum compensation to the policy’s beneficiaries in case of unforeseen accidents, going beyond the scope of traditional life and health insurance plans.
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Outpatient Expenses
When it comes to outpatient expenses, imagine tripping on a wire at the office and spraining your ankle. You visit your local general practitioner, undergo an X-Ray, and discover you need crutches. Additional visits to a Traditional Chinese Medicine clinic for further treatment are required. As unlike medical plans that require hospitalization to make a claim, your PA insurance can cover these outpatient medical expenses.
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Recovery Related Expenses
Picture another scenario – while rushing for an important meeting in the office, you slip and fall, injuring your back. After being hospitalized, you have to recuperate at home for weeks. However, you don’t have enough medical leave to take from work, resulting in a significant salary deduction. Some PA plans offer optional add-ons that provide income support benefits in case you are unable to work due to an accident for a specified period.
When Should You Consider Personal Accident Insurance?
The question arises: when is the right time to incorporate a Personal Accident Insurance Plan into your financial strategy? Let’s reorganize and explore the key scenarios:
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You have dependents relying on your income
Picture this: you are the primary breadwinner for your family, or you have dependents like children and elderly parents who rely heavily on your income. In such a scenario, a PA plan emerges as a prudent addition to your financial portfolio. Imagine an accident temporarily incapacitates you, rendering you unable to work. It is in this critical juncture that the payout from your PA plan can offer invaluable financial support to sustain your family during the period of reduced or zero income.
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No financial safety net
Consider the potential financial repercussions of an accident—expenses such as ambulance services, mobility aids, and outpatient treatments can quickly amass, potentially reaching thousands of dollars. The stark reality is that typical health insurance policies do not cover these costs comprehensively. If your family lacks the financial resources to provide assistance in case of an accident, acquiring a PA plan becomes a paramount step to protect yourself from the looming financial burden arising from unforeseen circumstances.
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Frequent travel on the road
Accidents are often unexpected, and they can come with hefty medical bills. Here’s where a PA plan steps in, offering protection against the unpredictabilities of accidents, whether they occur on the road or off it. Take, for instance, Manulife ReadyProtect, which extends its coverage to include double payout in cases of accidental death or dismemberment while using public transport.
Summary
Regardless of your occupation or lifestyle, the potential financial relief provided by a well-structured PA plan can offer peace of mind and financial stability during the most challenging of times. So, seize the opportunity to secure your financial future; consider integrating personal accident insurance into your financial portfolio today. It’s a move that ensures not only your stability but also the well-being of those who rely on you.
DISCLAIMER: The contents including images, videos, audio and written texts found on the author’s social media page and other platforms does not constitute a research report and it does not have regard to the specific investment objectives, financial situation and particular needs of any specific recipient of this message. All material and content are strictly for informational purposes only. The contents posted should not constitute financial or investment advice and should not be considered as an offer, or solicitation, to deal in any of the securities or investment instruments mentioned in this message. The author may, from time to time, own or have positions in any of the securities mentioned or referred to in his content or any securities related thereto and may from time to time add to or dispose of or may be materially interested in any such securities. All thoughts are the author’s own.
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Reference:
1. https://www.straitstimes.com/singapore/courts-crime/more-people-died-or-got-hurt-on-spore-roads-in-2021-as-more-activities-resumed
2. https://www.mom.gov.sg/faq/work-permit-for-fdw/what-is-personal-accident-insurance
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Knowing where to start
Accidents can be unpredictable, unexpected, and come with substantial medical bills. Personal accident insurance is your shield against these uncertainties. If you’re contemplating when to start your financial planning journey, remember that securing a PA plan is a critical step. Speak with a financial consultant or do your research to understand how a PA plan can safeguard your financial future.
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