Value of Personal Accident Insurance: Lessons from Serene

Personal Accident Insurance Asian Singapore Woman In Living Room

Serene’s story is a cautionary tale for anyone living in Singapore. 

Twelve years ago, Serene experienced a sudden back problem while at home, bending down to pick up her pet dog. Her back pain intensified quickly, eventually causing her to collapse after a mere sneeze in her kitchen. 

Concerned, she sought help from her mother, leading to a visit to the nearest hospital’s Accident and Emergency (A&E) department.

Serene found herself confined to a wheelchair, anxiously waiting for answers. After enduring an eight-hour wait at the A&E, Serene underwent an X-ray examination, which revealed no severe issues, just muscle tension. 

She was prescribed medication, given ten days of medical leave, and advised to rest. 

But what Serene realised later was that she had a Personal Accident (PA) insurance policy all along!

Not knowing anything about her insurance plans

Here’s where things get interesting – and frustrating for Serene. 

She had purchased the PA insurance policy years prior, attracted by the affordable premium due to her young age. 

However, she had no idea what she was covered for. She also didn’t understand the benefits of personal accident insurance, or even the fact that she had any form of health insurance.

"Buying insurance at that time was cheap because I was so young, so I never thought to find out more," she noted, highlighting the lack of awareness surrounding her insurance coverage at the time of purchase.

No guidance from anyone

Looking back, she realised she didn’t receive proper guidance from anyone—not the Business Office at the hospital where she was making her payment, not even her financial adviser. 

She was baffled. 

On one hand, she felt silly for not knowing what her insurance plan covered her for. 

And on the other hand, she wished someone had just explained it to her when she was in need of it the most.

Had she known sooner, she would have visited a private hospital instead, where she would have likely waited for shorter hours to see a doctor at the A&E. Furthermore, since costs of her medical treatment would be covered by her PA, she would have run further investigations to ensure nothing was wrong.

"I found myself so stupid," she admitted, lamenting the missed opportunity to leverage her insurance coverage during a time of need.

Her takeaway from this experience? Know your insurance and what it covers, and pick your adviser wisely. 

Understanding your insurance is important

Let’s delve deeper into the world of Personal Accident Insurance in Singapore to ensure you don’t find yourself in a similar situation as Serene.

What is Personal Accident (PA) insurance and how does it work?

Personal Accident Insurance provides financial protection in the event of an unforeseen accident resulting in bodily injuries. PA insurance policies typically offer benefits such as:

  • Accidental Death Benefit: A lump sum payout to your beneficiaries in the unfortunate event of accidental death.
  • Permanent Disability Benefit: Financial support in case an accident leaves you with a permanent disability, impacting your ability to work and earn a living.
  • Medical Expense Coverage: Reimbursement for medical bills incurred due to treatment for accidental injuries, up to a specified limit outlined in your policy.
  • Daily Income Benefit: Provides financial support to compensate for lost income while recovering from an accident, helping maintain financial stability during a challenging time.

Who should consider getting a PA insurance policy?

Having a PA is not mandatory, but think of it as a safety net in the case of unforeseen events.

Furthermore, if any of the following descriptions apply to you, having PA can offer added peace of mind:

  • You lead an active lifestyle: If you participate in sports, hobbies, or activities with a higher risk of accidents, PA insurance provides a safety net.
  • You are the primary breadwinner: For individuals whose income is crucial for family financial well-being, PA insurance offers peace of mind in case an accident impacts their earning potential.
  • You have limited health coverage: If your main health/hospital insurance has limitations on accidental injury coverage, having PA insurance can supplement your existing coverage.
 
Knowing what your policy covers, the specific benefits offered and the claims process empowers you to make informed decisions and leverage your coverage when you need it most. 

Contact your financial adviser to find out more about getting a PA insurance policy and get yourself covered today!

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