Personal accident policy

A financial firm offers an unsecured loan at a high interest rate. They also offer a rider as follows:

For an additional amount of 1.25% of your monthly outstanding, your outstanding loan amount will be covered in case of your accidental death, accidental total and permanent disability and terminal illness.

For a loan of $10,000 the annual premium is $125. This is more than 10 times of the normal rate.

If you pay $125 for a personal accident policy, you can be insured for $125,000 a year (not $10,000).

Search Google for "personal accident" and find out what is being offered in Singapore.