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TODAY MONDAY 28 APRIL 2014

FINANCIAL PROTECTION

Peace of mind for you and your family

A personal accident protection plan can make a big difference
While many Singaporeans know the importance of planning for retirement, few of us think about whether we have enough coverage should we become involved in an accident. Yet the truth is, accidents do happen. W hether its a minor one like fracturing a leg, or a catastrophic event that results in neck-down paralysis, accidents will sap you and your family of your time and health, as well as place an emotional and mental strain on everyone. The statistics for road traffic accidents for instance, give pause for thought. According to the Singapore Department of Statistics, there were 159 fatalities and 8,054 injuries in road traffic accidents here in 2013. In February this year, there were 20 fatalities and 649 injuries in road traffic accidents in Singapore. So it pays to have coverage should an unfortunate event occur, as the last thing you want to worry about is the accidents impact on your nances.
THE PAINFUL EFFECtS OF UNFORESEEN EVENtS

WHAT TO LOOK fOR IN A peRsONAL ACCIDeNT pROTeCTION pLAN

Income protection
Pays for your loss of monthly salary/ income under circumstances such as disability or if you lose your job due to an accident

Special Daily Hospitalisation Benet

Some plans provide daily hospitalisation benets for selected illnesses

useful benef its on occasion of death and disability. Lump-sum payments, for instance, can be very helpful in easing the pressure on loved ones who are trying to cope with the added nancial stress. Despite this, a national Money SENSE survey in October 2013 found that while 80 per cent of Singaporeans put aside some savings every month, more than half are underinsured, which risks exposing their families to possible financial stress should they be involved in an accident.
ROUND-THE-CLOCK PROTECTION

Total & Permanent Disablement (TPD)

Lump sum payment that is dependent on a TPD compensation scale

Medical Expenses due to Accident (including TCM Treatment)

Reimbursement of medical expenses that may include TCM treatment

Accidental Death (AD)

Lump sum payment due to accidental death

If youre hoping to rely on your savings to help during difficult times, such as when you are injured in an accident, youre not alone. A Nielsen survey in January this year showed that internationally, over 40 per cent of people who were actively saving said their top reason was to guard against health issues and household emergencies what people might call rainy-day issues. But accidents are more like thunderstorms that could wipe out all your funds, or cause you to drown in debt.

How does this happen? After an accident, you may be unfit to work for weeks, months, years, or even permanently. Not only does this mean a loss of future income, it also means you will not be able to pay for your regular expenses like credit card balances, taxes and household expenses once your savings run out. According to a July 2013 report by CN BC, Singapore has one of Asias highest levels of household borrowing relative to the countrys gross domestic product, at 77 per cent. Home loans account for an estimated three quarters of this household

debt, so being unable to pay your monthly mortgage instalments after an accident could mean losing the roof over your familys heads. On top of all this, you will likely have hefty medical bills to take care of. Often, it is the victims family members who have to find a way to continue running the household, pay off outstanding debts and meet the victims medical needs. Its a heavy burden for your loved ones to bear, especially if theyre unprepared. Thats where personal accident insurance can make a big difference, by providing a lump sum and other

Purchasing a personal accident protection plan can provide peace of mind for yourself and your family, at a time when it is most needed. Such plans are low-cost and affordable, but can offer numerous advantages. We Care Personal Accident Protection Plan by POSB, for example, offers a total coverage of over S$200,000 for its Premier Plan, among other benefits. The premiums are not age-related and do not increase with the policyholders age. You will also get much-needed income protection, which covers you for up to six months basic salary following accidental Total a nd Per ma nent Disablement and termination of permanent employment. This is especially important for small business owners or the self-employed, who may not have sufficient savings to cover their expenses. W hile we ca nt prevent accidents, we can prepare for them with the help of personal accident protection plans. They can give you the assurance that you and your loved ones will be able to carry on financially, even during the most challenging of times.

Be protected when you need it most

FROM POSB EXpeRT BRANDON LAM Head of Consumer Investment and Insurance Products

HOw CAN I bENEFIt FROM WE CARE PERSONAL ACCIdENt PROtECtION PLAN*?

WHAt IS PERSONAL ACCIdENt INSURANCE?

Personal accident insurance gives you and your family nancial benets if you sustain injuries in an accident. It offers you and your loved ones the peace of mind of knowing that you are well-covered should a sudden or unanticipated event occur.

We Care Personal Accident Protection Plan by POSB covers you for minor accidents such as slips and falls and more severe accidents that can result in death or total and permanent disability. The plan also covers Traditional Chinese Medical treatments and you can claim up to S$50 per visit and up to a maximum of S$500 per injury. If you renew your plan, youll enjoy an increase in the sum insured for Accidental Death and Total and Perma-

nent Disablement by 10 per cent each year for up to ve consecutive years. Most personal accident insurance plans dont cover illnesses, but We Care Personal Accident Protection Plan by POSB offers a special daily hospitalisation benet for Inuenza A (H1N1), avian inuenza, dengue fever and food poisoning of up to S$150 a day, for a maximum of 90 days.
WHO CAN APPLY FOR WE CARE PERSONAL ACCIDENT PROTECTION PLAN?

Personal accident insurance gives you and your family financial benefits if you sustain injuries in an accident.
Brandon Lam
HEAD OF CONSUMER INVESTMENT AND INSURANcE PRODUcTS

64 and are residing in Singapore, youre eligible for the We Care Personal Accident Protection Plan by POSB. Monthly premiums are low at only S$19.50 for the Classic Plan, and S$28.50 for the Premier Plan. Whats more, youll enjoy a fiveper-cent premium discount if you choose to make an annual payment.
*We Care is underwritten by MSIG Insurance (Singapore) Pte Ltd.
T h is is t h e 1 8 t h s tor y in a 1 9 - pa r t collaboration between TODAY and POSB.

If youre a POSB customer, aged 18 to