30 Jun 2016
Insurance may be one of the most important (or boring) purchases you will ever make but it deserves a rethink when you are not working.
We all go through different phases in life and understandably some of us may decide to stop working because of family commitments, company restructuring or early retirement. If you are out of work, does that mean your insurance coverage should stop? Not necessarily if you know what are the options out there.
Generally, people buy insurance covers for these:
Assuming you can spare $200 a year and are still in good health, you can plug the gap by buying insurance protection against accidental death and accidental disablement. This type of coverage is found in Personal Accident policies and is relatively inexpensive to buy.
Upon accidental death, the policy pays out a lump sum compensation to your dependants. If the accident leaves you with a total or partial disablement, Personal Accident insurance compensates you according to your disability.
As long as the bodily injury is caused by accident that is defined as external with a sudden and unexpected impact, most Personal Accident insurance policies cover your medical expenses too. Nowadays, the medical cover even extends to your visit to the Chinese Medical practitioners. You may have accidentally cut your hand, slipped and fell at home, fractured your foot while exercising - with the Personal Accident policy, your day-to-day activities are basically covered, anytime, anywhere!
Some Personal Accident policies offer additional features such as cash benefits if you are hospitalised due to an infectious disease, recuperation benefit and free child cover. As one policy differs from another, do make a comparison and decide what best fits your budget. Naturally, you would pay more for more benefits and coverage. Just don't assume a minimal premium covers you for anything and everything!