wealthfactsheet-life_insurance-personal

7. Personal Accident Insurance
In Singapore, Personal Accident Insurance is not considered as a life insurance policy. However at Strategy of Wealth.com, we believe that if there is a sum assured on one's life, it should be a life insurance policy.

As the term suggest, Personal Accident insurance is an insurance policy that covers one only on accidental causes. If a person suffers from say Heart Attack, he cannot claim on his personal accident insurance policy. Similarly, if a person suffers a heart attack and the heart attack causes an accident an eventuality of death to that person, the cause of death should go back to the first cause. So in ths case it is the heart attack, therefore the policy cannot be claimed.

However Personal Accident insurances are cheaper insurances compared to other life insurance products. As such a lot of people like its low cost to indemnify themselves against death due to accidental causes.

Personal Accident benefits extend beyond just death and total and permanent disability. Depending on the policy terms, they are able to cover dismemberment and hospital medical expenses.

Dismemberment is a very common and important feature in a personal accident policy. This is because if say a person loses his leg (below knee level), he is able to claim a certain percentage of the total sum assured. When this happens the remainder of the sum assured is still insured and can still be claimed if another accident occurs.

Hospital medical expenses can be claimed if a person lands in hospital and incurs some medical bills due to accident. This is usually on a reimbursement basis.

Personal Accident insurances have become innovative in the last 10 years. Now insurance companies are giving triple and double indemnity for death on accidental causes.