Not only are accidents unpredictable, they can be expensive too. Your emergency savings could be wiped out if you are hospitalised and left unable to work due to a major accident.
Be prepared for such scenarios so that you can protect yourself against uncertainties and ensure you have the necessary finances as you recover.
One way to reduce the financial risks of accidents is by getting personal accident insurance. Which plan suits you best?
What is a personal accident plan?
A personal accident plan is an insurance plan designed to provide coverage against injuries, disabilities, and death caused by accidents.
READ MORE: Should I get a personal accident insurance?
What does Personal Accident Cover?
Every policy offers different coverage, but these are the three main categories these plans cover:
- Accidental death benefits
- Permanent or temporary disability caused by accidents
- Medical expenses and hospitalisation benefits as a result of accidents
Today, many personal accident plans also cover some non-accident medical expenses incurred from infectious diseases such as dengue and Covid-19. Some providers also have additional overseas riders to cover you if you contract an illness outside of Singapore.
Personal accident plan vs other insurance plans
A common misconception is that you can use a personal accident plan to replace your health or life insurance coverages. All these insurance plans cover separate issues.
|Personal Accident insurance||Hospitalisation insurance||Life insurance|
|Covers expenses incurred as a result of personal accidents.||Reimburse your health-related medical expenses (accident or not).|
Pays out a benefit upon death or total permanent disability.
|A lump-sum benefit in the case of accidental death||–|
A lump-sum benefit in the event of death or disability (accident or not).
|Covers expenses related to accident-induced disability||–|
|Daily hospitalisation pay-outs only if it is caused by an accident.|
Includes medical and follow-up expenses related to accidents only.
|Covers most hospitalisation/medical expenses (accident or not).||–|
Comparing personal accident plans
|Plan Name||Annual Premium Payable|
|Main Benefits and Coverage||Things to note|
|SingLife with Aviva Personal Accident Lite||S$90||Accident death/ Disablement: S$100,000|
Medical Expenses for accidental injury: S$3,000
TCM/Chiropractic therapy: S$500 (S$50 per day)
Hospital allowance as a result of an accident (up to 365 days): S$50 per day
Hospital allowance in ICU as a result of an accident (up to 30 days): S$100 per day
Medical expenses for injury include food poisoning, dengue or Zika.
Free child cover up to 30% of sum insured.
Cheapest PA plan in the market.
It does not cover high-risk sports, hazardous occupations and aerial or underwater activities more than 40 metres in depth.
|MSIG Protection Plus Silver||S$123.05||Accident death: S$100,000|
Permanent and Total Disablement: S$150,000
Permanent and Partial Disablement: Up to S$100,000
Hospitalisation Cash Benefit: S$50 per day (Max S$2,500)
Worldwide Medical Expenses (includes TCM, Accidental Dental, Mobility Aid): S$1,000
Up to 3 children covered for free when you and your spouse enrol at the same time.
Bereavement grant of S$3,000.
|AXA Personal Accident Gold||S$467.27||Accident death/ Permanent Disablement: S$350,000|
Medical Expenses without hospitalisation (per accident): S$5,000
Medical Expenses with hospitalisation(per accident): S$10,000
TCM / Physiotherapy / Chiropractic Treatment (per year): S$350
An additional 50% payout should death occur overseas or on public transport.
Double coverage for medical expenses if you are hospitalised for at least 48 hours.
Your child enjoys 20% of your cover and additional cover for Hand, Foot, and Mouth Disease.
|Liberty PACare Plus Executive||S342.40||Accidental Death / Permanent Disablement: S$300,000|
Medical Expenses: S$5,000
Daily Hospital Cash (max period of 90 days per accident): S$200 per day
ICU Daily Hospital Cash(max period of 90 days per accident): S$400 per day
TCM and Chiropractor Treatment (per accident): S$500
Medical expenses coverage doubles when insured is travelling on public transport.
If both parents take up the policy together together, the child is covered for 30% of the parents’ sum insured.
If only one parent takes up the policy,the child is covered for 10% of parent’s sum insured.
|Income Personal Accident Assurance Plan 4||S$1,900||Accident death/ Disablement: S$1,000,000|
Permanent disability (per policy year): S$1,500,000
Medical Expenses: S$20,000
TCM/Chiropractic treatments (per accident): S$1,250
Daily Hospital Income (per day, up to 104 weeks in a row): S$400
Weekly cash (per week; up to 104 weeks in a row): S$500
It offers a million-dollar coverage.
But the plan does not offer liability coverage. This means that you won’t be covered for legal liabilities if a third party was involved in the accident.
|FWD Personal Accident Plan||S$90||Accident Death/Disability: S$100,000|
Permanent total and partial disability (per policy year): S$100,000
Medical Expenses: S$2000
Mobility Aids/ Prosthetics: S$500
Home modifications: S$10,000
Funeral grant for accidental death: S$5,000
Provides coverage up to age 75. Its home modification installation, mobility aids/prosthetics, and physiotherapy coverage makes this plan suitable for seniors.
But the plan does not offer daily hospital income and weekly income benefit from temporary disability.
|Tokio Marine TM 365 Plan A||S$90.95||Accidental Death/Disability: S$50,000|
Medical expenses: S$2,000
Daily hospital income: S$50 per day
Mobility Aids/Prosthetics: S$1,500
Home and Vehicle Modifications: S$3,000
Tokio Marine’s TM 365 Plan A provides coverage up to age 85. The weekly income and daily recuperation income can be beneficial for seniors who are still working.
Rates above are based on a non-manual occupation in a non-hazardous environment. The premium will depend on the individual’s medical conditions. The respective providers will provide a quote.
Recommended plans for each demographic group
|Plan Name||Suitable for|
|SingLife with Aviva Personal Accident Lite|
MSIG Protection Plus Silver
Average office worker looking for the cheapest plan with sufficient coverage
|AXA Personal Accident Gold|
Liberty PACare Plus Executive
People looking for fullest coverage
|Income Personal Accident Assurance Plan 4|
Individuals with high-risk or hazardous jobs
|FWD Personal Accident Plan|
Tokio Marine TM 365 Plan A
Seniors looking for affordable and sufficient coverage
The perfect insurance plan does not exist. Everyone’s financial situation and medical conditions are different.
Make sure the personal accident plan does not replace your life or hospitalisation insurance. It should complement them instead, and be another layer of financial safety net to protect you and your loved ones from sudden financial hardship.