Average Cost and Benefits of Personal Accident Insurance 2024

Personal accident (PA) insurance is a type of insurance policy that provides worldwide coverage and compensation if you get into an accident that results in a disability or death. The severity of disability can range from a temporary partial disability such as a broken bone to severe disabilities such as blindness. The typical duration of a policy covers you for one year, and you can usually renew this policy until you turn 70 or 75. Generally, personal accident insurance can be a good option for those whose families depend on them financially. Below, you can learn more about personal accident insurance—particularly how much you should expect to pay and what benefits you should expect to receive.

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Average Cost of Personal Accident Insurance

The average cost of a personal accident insurance plan for the status-quo office worker is S$381 per year. However, premiums vary based on your occupation and the level of coverage you require. For instance, white-collar workers (e.g. lawyers, financial analysts) who are looking for a basic-tier PA plan can expect to pay as low as S$117 per year. On the other hand, a construction worker looking for as much protection as possible can expect to pay S$1165 on average.

Average Cost Based on Occupation

Most personal accident policies change their premiums based on your occupation. When you go to purchase your policy, you will see occupations divided into 4 classes: Class 1, Class 2, Class 3 and Class 4 occupations.

Occupations considered to be Class 1 are skilled, white-collar workers such as financial analysts, bankers, accountants or lawyers. They pay the least in terms of monthly premiums, because they typically face the smallest risk of getting into a severe accident. Occupations considered Class 2 are semi-skilled workers or those working in partially outside. These include salesmen, barbers, photographers and engineers. On average, we found PA premiums for Class 2 workers to be 12% more expensive than for Class 1 workers. All PA plans that require you to divulge your occupation offer coverage for Class 1 and 2.

Class 3 and Class 4 occupations are considered to be risky by most insurers and will result in the highest premiums. First, Class 3 are workers who have some exposure to hazardous conditions, like machinery. Bartenders, factory workers, paramedics and veterinarians can be considered Class 3 workers. We found Class 3 Occupations to cost 56% more to insure than Class 2 Occupations—or around S$200. Class 4 is the most expensive class to insure and costs an average of 52% more than Class 3 Occupations and around 154% more than Class 1 Occupations. Class 4 Occupations are considered unskilled or high-risk labor or work involving heavy machinery, including construction, police work or pilots. Few insurers will insure you if you work in a Class 4 Occupation, due to the relatively high risk of getting into an accident in these jobs.

Average Cost Based on Coverage

As commonly seen with most insurance policies, PA policies charge different prices based on the amount of coverage you want. For example, most plans have a basic tier plan, a middle of the range plan and a top-tier plan. The most basic policy providing between S$50,000 and S$100,000 of accidental death and disability coverage will cost between S$138 and S$346, depending on occupation. Alternatively, the average top-tier plan will cost between S$650-S$1,808. For each increasing plan tier, we can expect premiums to increase around 100%-137%.

There are also non-occupation based personal accident plans. These plans offer the same premium regardless of the occupation and usually require you to go through a financial advisor to purchase. The average cost of these plans is S$318. Most of these plans are targeted towards certain demographics such middle-aged individuals or cyclists. These policies typically offer different coverage amounts, with the basic plan costing around S$188 per year and a top-tier plan costing S$465 per year.

Average Benefits of Personal Accident Insurance

Personal accident insurance will provide coverage for accidental death, total and permanent disability, partial or temporary disability and medical expenses. The average sum assured for accidental death and disability is S$314,286. When looking at separate tiers, we find that the average basic-tier PA plan will offer between S$50,000 and S$100,000 of accidental death and disability coverage. Mid-tier plans offer an average of S$231,579 sum assured and top-tier plans have an average of S$610,000 sum assured. There are also some plans that offer an extra payout for total and permanent disability, with the highest amount being 300% of the sum assured.

Other miscellaneous benefits offered by personal accident plans include a weekly income benefit, a daily hospital cash benefit, home modifications and mobility aid benefits. A weekly income benefit will provide a payment for each week you are out of work due to a disability. A daily hospital cash benefit is similar to a weekly income benefit, except you'll get paid per day of hospitalisation and you do not have to be employed. Home modifications and mobility aid benefits will pay for modifications either in your home or on your body, such as wheelchairs, prosthetics or handrails. You may also find funeral grant, child guardian and personal liability benefits. However, we found that around half the insurers on the market will make you pay for most of these miscellaneous benefits separately. Lastly, most personal accident plans also offer coverage for infectious diseases and food poisoning.

Methodology & Considerations

To find out the average cost of personal accident insurance in Singapore, we compiled data from 16 different insurers and over 100 plans. We segmented premiums based on occupation and level of coverage. For instance, we compared to the most basic PA plans insurers had to offer, their mid-range plans and their top tier plans. From this we were able to find out the average benefits you can expect to get and how much you should expect to pay for that level of coverage. One important thing to note is that what is considered a risky occupation actually differs from insurer to insurer. For instance, we found nurses to fall into either a Class 3 Occupation or a Class 2 Occupation depending on the insurer. Because this can result in a S$200 price difference, you should compare different plans to find the one that puts your occupation in the lowest possible class.

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