Do you have a Personal Accident Plan included in your insurance portfolio? If not, do you know that you may not be adequately covered in certain aspects of your Financial Planning?
Recently I had two prospects coming to me, asking me if I could help them with their recent medical bills resulting from an accident. After looking through their portfolios, one of them have a simple Term Insurance that cover against Death, Total & Permanent Disability and the 30 Critical Illnesses. The other party has a lot of those fixed deposit plans with the banks and certain insurance companies, insurance coverage wise is just on death and total & permanent disability.
The only advice is that I can give is that they will not be able to claim from any of their current insurance plans, neither could they claim from their medishields because they were not warded and most of their treatments came from the clinical sides.
They were disappointed but they were not angry because they told me that they have never thought that they will meet with an accident and have always ditched the idea of getting a Personal Accident Plan because they feel that it’s a waste of money (no benefits until there’s a claim else money spent is down the drain)! They can only live with bearing the full medical costs on their own now!
The Importance Of Having A Personal Accident Plan
So what are the main benefits of getting a Personal Accident Plan? Let’s look at a few:
1. You Can Claim Reimbursements For Your Medical Bills For Conditions Resulted From Accidents
As long as you have suffered some form of injury because of an accident (there’s a proper definition to this so please do check against your product summary) and you have incurred a bill either from a hospital or from a clinic (yes, this is covered and it also include those TCM). You can actually claim from your Personal Accident Plan up to a certain limit depending on your plan type.
If the limits are high enough, you may be entitled to claim for future medical bills (especially follow-ups) for the current injury.
2. You Can Claim Compensation For Some Permanent Injury Suffered Due To Accidents
If, you do suffer from a permanent injury, e.g loss of an arm or an eye, you can also claim some form of compensations from your Personal Accident Plan.
3. You Can Get Some Cash Benefits Because Of Your Temporary Disablement
You may suffer from a broken arm that will result in you having to have a long medical leave and thus you are unable to go back to work. Your income may suffer as a result. Having a Personal Accident Plan may help to lessen the financial impact because most plans out there offer Cash Benefits (will never be high enough to cover your full month’s pay) to help you tide over the situations.
Why A Personal Accident Plan Is A Must-Have In Your Insurance Portfolio
In order for you to understand the importance of having a Personal Accident Plan, you must understand the limitations of some of your current Insurance Plans and its coverage type:
– Whole Life Insurance
Most of these plans cover you against Death and Total & Permanent Disability (must be really disabled). They usually pay off in a lump sum. For the 30 Critical Illnesses, your conditions must meet the definitions stated in the policy definitions in order to get the lump sum claim
– Endowment Plan
Most Endowment Plans offer basic insurance coverage like Death and Total & Permanent Disability. And for Critical Illnesses, most plans are usually recommended to have the coverage in the form of a Future Premium Waiver.
– Investment-Linked Plans (ILPs)
Likewise, most ILPs offer insurance coverage against Death, Total & Permanent Disability and Critical Illnesses.
– Medical Insurance
Most of the medical insurance plans would require you to have a minimum hour of hospital stay to receive some form of medical attention or to have some form of referral from a Specialist or Polyclinics in order for you to claim against some outpatient treatments.
– Hospital & Surgical Plans
Likewise, as the name states, you must be warded in a hospital and/or to go through some form of surgery in order to receive compensations.
As you can see, having a Personal Accident Plan included in your Insurance Portfolio will help to cover you in areas that most of your insurance plans cannot cover. Though for most, the concern is that the money spent is down the drain when there’s no claims, but on the other hand, you are given a peace of mind at all times. And for most accident plans, their premiums are easily affordable and you should never feel a pitch paying for them!
Look into your insurance portfolio today, if you do not have any Personal Accident Plan included, try to do so!