When you’re healthy and well, it can be challenging to think about the possibility of being too ill to work. But ask yourself this question: Would you be able to keep a roof over your head if you couldn’t work due to ill health? Many people adopt the “it will never happen to me” attitude. However, when your livelihood depends on your physical wellbeing, is it worth leaving it all to chance?
Personal accident and illness insurance is a type of insurance policy designed to protect your income if an injury or sickness prevents you from returning to work. This enables you to keep up with your essential bills and financial commitments, giving you peace of mind and, most importantly, allowing you to focus on getting better.
What Does Sickness and Accident Insurance Cover?
Sick and accident insurance covers up to 85% of the insured person’s income if they become unable to work due to a covered event led by a bodily injury or sickness. For instance, if you were to break a leg in a car accident and this injury prevented you from returning to work, you would be entitled to a benefit consistent with the scope of cover you selected. Most policies allow you to choose either accident only or accident and illness cover combined. Some policies also offer the option of lump-sum payments for certain temporary total disablement and/or temporary partial disablement, permanent partial disablement or death by accident.
Aside from mainly benefiting those who work to earn a living, having personal accident and illness insurance is particularly valuable for contractors, sole traders and small-business owners. In Australia, individuals and sole traders cannot purchase Workers Compensation Insurance, making a personal accident and illness cover essential for them.
Who Is Sickness and Accident Insurance Cover For?
No one can predict an accident, which is why this kind of insurance cover is a good option for everyone. Here are some reasons why getting personal accident and illness insurance might make sense. Injuries are Common at Workplaces
Regardless of PPE safety gear, workplace injuries happen more often than we think. If you get injured at work, this kind of insurance plant will provide financial relief if you end up injured, hospitalized, or need additional assistance. Some plans will also include daily hospital income, which can serve as a financial safety net, especially if you’re the household’s primary provider.
You Practice Sports, Fitness or Outdoor Activities
Suppose you frequently engage in one of these things. In that case, you should also consider a sickness and accident insurance cover as the likelihood of falling or suffering an injury could be much higher than individuals who are less physically active. A plan that covers recreational and sports activities will cover the medical expenses incurred and may even be used to supplement your private health insurance plan to offset any out-of-pocket costs you may incur.
Financial Protection Against COVID-19
Some illness insurance also offers protection against COVID-19. After a waiting period of only 15 days, you’ll be able to claim related to the COVID-19 outbreak earlier than the usual 90 days waiting period of other infectious diseases.
You Have Children
As children grow, they become more active and start to test the world outside of their parent’s comfort zone, which naturally results in more accidents. Falls are the leading cause of non-fatal injuries to children, whether it’s falling on the playground or falling off their bikes. Now that some sick and accident insurance policies assure you that your children are protected in case of unexpected accidents or illnesses.
What to Consider When Choosing a Sickness and Accident Insurance Cover?
Make Sure It’s Paid Directly to You
Look for an insurance plan that pays you directly in the case without any deductible or extra waiting time after your claim is verified.
You Choose How to Spend Your Money
It would be best if you were allowed to use the money you receive from your accident insurance however you want as you recover from your injuries. It should cover anything from medical to non-medical costs like your monthly rent.
Extra Protection for Child Athletes
Some insurance plans will allow you to start each year with up to $500 in the fund that enables the plan to pay claims that would otherwise be denied due to certain limitations.
Optional Features for Extra Coverage
You may want to consider a policy that you are paid a benefit when your family remain claim-free for five years. It’s also good to get an automatic increase option that provides an automatic 50% increase in benefits every year for a maximum of five years.
