Sunday, January 11, 2009

Looking for a good PA Plan

In my last posting, I mentioned the benefits of having a Personal Accident Cover. It was also highlighted in the comments that it is by no way to replace coverage against death because death can happen due to both accident and sickness.

For those looking for a Personal Accident Cover, I can share a few tips in how I select coverage for my clients.

1) Get a plan that forcus on the core coverage
* Some covers in a PA plan, in my opinion, are not very necessary. When such covers are added in the PA plan, it adds up to the premium.
* What are the common things which I feel are not so necessary
a) Hospital Benefit - If you need this cover, get one which covers accident and sickness. Covering accidents only is not good enough, so no point getting this.
b) Emergency Evacuation - When we go overseas, we usually get a separate Travel Insurance which normally also cover emergency evacuation.
c) Recuperation Benefits, Bereavement Grants, Lifestyle maintenance, etc... They are simply extra benefits to the total sum assured. If you are covered for $100k, why so concern about the extra $5k or so?

2) Look into the definition of an Accident
* Some common Definitions of Accidents
a) Bodily injury caused by violent, accidental external and visible means which is the sole cause of death or disablement or which necessitate medical or surgical treatment
b) Sudden, unforeseen and fortuitous event that results in the insured person suffering death, disablement or injury
c) an event which happens suddenly and gives rise to a result which the Insured person did not intend or anticipate
* First definition is the worst of all. It is very restricted with its definition. I'm not sure if I'll be covered if I die in a fire by fume and not fire or if I die through food poisoning, etc. The 2nd and 3rd Definition remove such restrictions.

3) Check out if your PA plan covers the below:
a) Terrorism. Some insurers covers but put some terms and conditions applies in it.
b) Motorcycling whether its rider or pillion. Don't take chance. You never know when you may need to ride a motorcycle and your family be shock that your PA plan don't cover motorcycling.
c) Certain hazadous sports, such as Scuba Diving, Rock-climbing or Skiing even if its for leisure when you go holiday.
d) Dengue Fever. Some Insurers covers for Insect bites but not for Mosquito bites such as Dengue Fever. Watch out...
e) Traditional Chinese Medicine. Some insurers did not mention anything about TCM. They may or may not pay but they rightfully can refuse to pay you if you visit them.

4) The premium rates
a) Some insurers imposed the same premium rate for Class 1 and 2 occupations. For those in Class 2 occupations, you might be able to get very good rates from them.
b) For a $100k cover, you normally need not pay more than $10/mth. Many PA plans purchased through Credit Card telemarketers normally charges at least $20/mth.
c) Some companies charge you double and promise a 50% refund of premium after 5-6 yrs. I'll rather than you pay less and save up the rest of the premium yourself than to tie yourself with that insurer for 5-6 yrs.
d) Some insurers gives free coverage for children when both parents take up their PA plan. For those with 3 children and above, its a very good free cover.

Have fun shopping for a good deal... but remember that the cheapest or the most expensive plan doesn't always mean the best.

5 comments:

Derek said...

Hi Adrian,

It caught me by surprise that it can cost as low as $10 for a $100K coverage. While I'm aware that PA plans are quite cheap, I didn't know that the coverage can be that high.

I have a enhanced personal accident plan by AIA and I am paying almost $13/mth for a principal sum coverage of just $25K. If I may ask, can you just recommend a few insurer(s) - I will find out the info myself and ask my agent on this.

Cheers!

Khiat Han Hwee Adrian said...

Hi Derek,

You are probably under the AIA Personal Accident for Life plan. Drop me an email at akhiat@pacific.net.sg. I can send you some info for your leisure reading.

Anonymous said...

Derek,

AIA is well know for his extremely high pricing especially its riders.

You should check out the Aviva's SAF Group Term which covers death(due to any cause), TPD (any cause) and accidental disablement. Premium below 65 is $51.20/month for $400,000 sum assured.

If you are with CD or Police, you can look at HomeTeam's NTUC Income Group Term that covers death (any causes), TPD (any causes) and accidental disablement. For sum assured $300,000 it will cost $381 per ANNUM.

Derek said...

Hi Anonymous,

Thanks but I'm just looking for a pure Personal Accident plan. The plans you mention look attractive but I'm not in any uniform group and I have more or less max out my budget for in insurance.

Cheers!

Anonymous said...

Hi Derick,

If you are doing your reservist for SAF you can apply for Aviva's SAF Group insurance. If you are with Civil Defence or Police for your reservist, you can go for NTUC Income's HomeTeam Group. You do not need to be an employed staff with the uniform group.