A personal accident plan or PA plan is a type of umbrella insurance that provides financial support to policyholders in the event of an unfortunate accident. As its name implies, a personal accident plan is primarily intended to protect against accident-related complications, providing compensation for injuries, disabilities, or death.
In such a case, you and/or your family would need financial assistance to continue to enjoy a similar standard of living, even with the loss of your income. Even in accidents that are not that serious, the injuries could keep you from working for a period of time and leave you with medical bills that you normally can’t claim on your health insurance.
Reading: What is accidental injury insurance
coverage provided by pa plans
There are four main categories of coverage in personal accident plans:
1. death benefits
If you were to lose your life due to an accident, your family would normally receive a payment equal to the insured amount.
This would be in addition to any life insurance you may have and provide your family with greater financial security in your absence.
2. permanent and/or partial disability
An accident can also cause a person to become permanently disabled or lose vital physical functions that prevent him or her from earning a comparable income or income.
If you were disabled by the accident, either permanently or partially, you would receive a payment. These payments can be used to care for your medical and daily needs, as well as your family.
There are also typically riders you can purchase that will provide reimbursement for mobility aids, reimbursement for home modifications, and coverage for other potential expenses you may incur after a serious accident.
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3. temporary disability
Accidents, even if they are not serious, can result in temporary disability or leave you unable to work for a period of time. in such cases, personal accident coverage may also be included in the medical reimbursement.
You can also purchase additional riders to cover income replacement benefits.
4. medical expenses and hospitalization benefits
You may also be able to claim certain inpatient and outpatient medical fees for your treatment. however, coverage from a personal accident plan may not be as comprehensive as health insurance coverage, and you should not rely on it to cover most of your medical costs.
In many personal accident plans, you can also purchase riders for hospitalization benefits. this comes in the form of a fixed daily allowance based on length of hospital stay, ambulance services, bone fracture benefit, and/or medical evacuation and repatriation benefit.
why a pa plan is an important component of your overall insurance coverage
Not everyone thinks personal accident coverage is necessary or crucial. Some may even believe that personal accident insurance coverage is more suitable for people employed in high-risk occupations or those involved in risky everyday activities.
this is not true as an accident can hit anyone. Even if you think you have enough health or life coverage, there are several key benefits to being covered by a personal accident plan that you should consider.
1. accidents are not an “if” but a “when”
Accidents can happen when you least expect it. it can happen because you are just careless or just being in the wrong place at the wrong time. Accidents are not only unpredictable and unexpected, they can also be costly.
Your health insurance only provides coverage when you are hospitalized and for medical treatment. If you are unable to work after an accident, your emergency savings can quickly disappear. therefore, you should be prepared for such scenarios.
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2. covers outpatient treatments
An important benefit of a personal accident plan is the ability to claim medical reimbursement for certain inpatient and outpatient treatments, such as an MRI or CT scan, which can be expensive, after an accident. Unlike hospitalization plans, personal accident plans do not require you to be hospitalized in order to claim certain treatments.
You can view your personal accident plan as one that complements your health and life insurance coverage.
3. income benefits
Accidents have the potential to affect a person’s ability to work, either in the short or long term, or reduce their future earning power.
In such scenarios, a personal accident plan will be able to protect you from medical bills related to the accident, as well as provide compensation to make up for lost wages. this is by paying a daily hospitalization benefit and/or paying a lump sum.
4. wide coverage
while no one wants to have a disabling accident. however, it is always better to be safe than sorry. Minor or severe disabilities that impair your ability to earn income will not be covered by your life or health insurance.
For life insurance, coverage only applies if you lose your life or suffer total and permanent disabilities. Health insurance only takes care of you when you’re hospitalized and doesn’t provide lump-sum payments to get you and your loved ones through tough financial times.
A personal accident plan, on the other hand, provides this peace of mind, allowing you to focus on getting better and recovering as quickly as possible. while Singaporeans also enjoy national severe disability coverage under eldershield (and careshield life in the future), the criteria for receiving a payment tend to be stricter: missing three out of six ADLs (activities of daily living). /p>
guarantee sufficient protection against personal accidents
As mentioned, a personal accident plan is not intended to replace your life or health insurance coverage. rather, you want to insure yourself with such a policy to cover potential gaps in your coverage that can leave you and your loved ones vulnerable to unpredictable scenarios in life.
the solitaire aia personal accident plan provides you with comprehensive coverage, providing financial support in the event of injury, disability or death, giving you the peace of mind you so much need.
