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.