I met a prospect yesterday. He has already bought life insurance and medical card two years ago. So, I recommended him to buy a personal accident (PA) plan. He asked me why he should buy it. The picture above shows the importance of PA in our life.
If the old man has only bought life insurance in his entire life and he losses one leg now due to an accident, will he be compensated by insurance company? The answer is NO. The reason is that life insurance doesn't cover this kind of disability unless he losses two legs like what I have explained previously in my post titled WHAT IS TOTAL AND PERMANENT DISABILITY (TPD)? (January 9, 2009). As a result, he will now have a problem to continue paying his bills, daily expenses, life insurance premium and so on. His life insurance now becomes a burden to him. At the end, what he only can do is blaming his insurance agent for not telling him the types of disability his life insurance doesn't cover. However, it doesn't mean that life insurance is not important. It is just that life insurance is only one part of a comprehensive coverage we should possess in our life.
How can we solve this problem? The solution to this problem is PA. By having PA, permanent total loss of one limb is covered. So, the old man will only be compensated by insurance company if he has bought PA.
In sum, buying life insurance without PA is like buying a BMW car without an airbag. For sure your car is still safer to drive compared with other cheaper cars but it doesn't reduce your risk on the road to the lowest level.
So, for those who have not bought PA, what are you all waiting for?
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