Key features of personal accident insurance

You never know what life can bring you. While we all hope for the best, certain things are out outside our fields of influence, and everyone can fall victim to serious accidents and illnesses. That’s where personal accident insurance comes in. It offers the protection that you or your family will need, should anything happen to you. In today’s article, insurance expert Pacific Prime will explain what personal accident insurance is, and who should consider getting it.

What is personal accident insurance and who is it for?

Personal accident insurance is a type of insurance cover that provides a lump sum cash payment if you suffer an accident that leads to death, disability, or dismemberment. This means that you can choose how to spend the money you receive from this insurance product. It can be used to pay for your medical bills, act as financial support during recovery, or be spent on anything else.

Who is personal accident insurance for?

Personal accident insurance acts as another layer of protection for any individual up to the age of 55 years. It’s a good choice for people with an active lifestyle, or single professionals who don’t want to burden their parents or siblings financially. Lastly, it’s a good choice for the breadwinner in the family, as the lump sum payment can provide for a family during a period in which the policyholder cannot work.

Key features of personal accident insurance

The core feature of personal accident insurance is to provide coverage in case of an accident in which the policyholder suffers serious bodily injuries or dismemberment, which can lead to disability or even death.

In such situations, resuming professional work can be impossible, or could take a long time  (and a lot of money) to get back to full health. A personal accident insurance payout allows the policyholder to cover loss of income, mortgage, rent, medical expenses, and any other financial needs.

The coverage is valid in case of most kind of accidents, such as those caused by natural disaster, car accident, public transport accident, robbery, household accident, and amateur sports. Exclusions as to certain sports may apply, and will vary from insurer to insurer, so it’s always best to check.

Another core feature of this plan is reimbursement for medical expenses. The benefit limit on this feature is usually low, and only covers costs stemming from the immediate transport, hospitalization, and medical care that is a direct result of an accident.

One last important feature of personal accident insurance is that most plans provide worldwide coverage, which can be extremely useful, as accidents can just happen anywhere.  

Additional coverage options

Personal accident insurance, besides its main role of providing coverage in case of an accident, can be extended to include other options. These add-ons to the base policy offer an additional layer of protection for a relatively low monthly premium.

Critical illness

No one ever expects an illness, but the truth is it can happen to us all, at any age. In the event you got seriously ill, would you be able to cover the medical costs or loss of income associated with the situation? Here’s where the critical illness cover comes in handy. Critical illness covers 47 major illnesses including cancer, stroke, heart attack, kidney failure, and more. It provides you with a lump sum payment in the event of the first diagnosis of a critical illness, and for a relatively small premium increase, it is a valuable addition to an existing health insurance plan.

Daily Hospital Income cover

Hospitalization due to an accident or illness can be costly and take a long time. With this coverage, the policyholder will get a daily cash benefit to cover the costs of hospitalization, loss of income, and any other financial needs. This plan can also cover an extended stay in the intensive care unit and long term hospitalization (over 30 days).

This coverage is a smart addition to an existing health insurance plan, as it can supplement it, and the lump sum payments from the Daily Hospital Income cover can be used for other necessary affairs.

Use Pacific Prime China to your advantage

Benefit limits and coverage levels can be individually set in personal accident plans. For example, a lump sum payment of RMB 1 million might not be enough, so our brokers can arrange with insurers to offer higher coverage limits.

Other items for you to understand are the terms, conditions, and exclusions of any potential policy, so you know when can you make a claim, and choose the benefits that you think matter most to you.

Last, but not least, think of all of the various insurance coverages you might need: primary health insurance, personal accident coverage, daily hospital income cover, and critical illness insurance.

No matter what questions you may have, feel free to contact the team at Pacific Prime China. Our experienced insurance advisors will help you compare plans, and provide you with a free quote. Also, don’t forget to check out our blog and resources pages, where you can find a wide range of health and insurance guides, such as our maternity insurance guide, in-vitro fertilization guide, chronic pain care providers guide, and more.

Disclaimer: Pacific Prime China solely represents, operates and manages locally regulated insurance products and services in the territory of PR China. Any references to Pacific Prime Global Company or Group, the international services, insurance products or otherwise stated written or verbally, is for introduction purposes about our overseas network only as each entity is fully independent.