Personal Accident Insurance: Discover What’s Covered & How To Compare Policies
Everyone wants to ensure that their family is thoroughly taken care of, but sadly there’s no way to guarantee that you’ll always be able to provide for them. Accidents and illness can strike without warning, leaving you and your loved ones without an income as the bills pile up.
These times can be stressful, but there are measures you can take to reduce the stress. Taking the time now to prepare, can ensure that when accidents happen, they’re not as bad as they could be.
Prior to making a decision on a level of cover, ensure you review the Product Disclosure Statement for details of policy inclusions, limitations and exclusions.
Achieve peace of mind with personal accident insurance
One of the ways you can prevent a loss of income* is by choosing an appropriate personal accident insurance policy. Cover compensates for a loss of income for a set period of time*1, helping you better manage your bills and expenses while you recover and get job-ready.
This may be especially important for self-employed small business owners and contractors who may not be protected by a workers’ compensation agreement. In the event that you’re injured on the job, you may not have access to the standard compensation and support provided to a salaried employee, putting you in a tough situation when the bills come due and you’re still unable work.
But finding a policy with suitable cover for you and your family can be difficult. At iSelect, we want to help streamline your decision-making process. In this article, we’ll explore what typically makes a good personal accident insurance policy, what it can cover, and how it can be of use for you.
* limits and exclusions can apply
What does personal accident insurance typically cover?
Personal accident insurance can provide support when you can’t work, but before you take out a policy, it’s vital you understand what’s usually included and what’s not.
In the event that you’re unable to work in the wake of an accident causing injury or due to illness, your personal accident insurance policy will provide you with a weekly income for a set period of time. This could be as simple as falling off a chair and putting your back out for a few weeks, to something as complex as severely damaging your hands from a DIY accident requiring months of recovery.
You can choose to cover loss of income due to injury, illness or both. Optional extensions include death benefits, disablement benefits, and business expense cover.
While personal accident insurance policies are quite broad in what they can cover, there are certain situations where you typically won’t be covered. These include:
- Pre-Existing Conditions: Illness or injury that pre-date the policy (called pre-existing conditions) aren’t covered, so you can’t fall sick or sustain injury and only after that take out coverage for the earlier illness or injury
- Birth & Pregnancy: pregnancy, childbirth and complications related to them aren’t covered, meaning, for example, that should you or your partner suffer from particularly bad and prolonged morning sickness then you won’t receive coverage
- Criminal Acts: Injuries resulting from criminal acts caused by you will not be covered
- Suicide /Self Harm: claims related to these events are excluded
- Dugs & Alcohol: Injuries sustained while under the influence of drugs or alcohol will not be covered
- Athletes: Athletes will also not be covered for injuries suffered while participating in professional sports
- Mental Illness: Mental illness and emotional disorders aren’t covered
Preserving your individual lifestyle
But how do you find a suitable policy for you? Determining the appropriate level of cover for yourself means taking a hard look not just at how much money you earn, but how much you spend on necessary expenses each month such as groceries, mortgage or rent, utilities, and your car.
This information is necessary because many personal accident and injury policies do not cover 100% of your salary – most are capped at around 85%. While this is more than enough to pay your bills and live comfortably, it may mean you need to downsize on some optional aspects, so keeping an accurate budget is essential.
Coverage periods can also vary, with many providing cover for up to two years from the date of accident or illness, or to a certain age such as 60. In addition, there are differing waiting periods (how long you have to be out of action before the cover kicks in) and benefit levels available.
Compare personal accident insurance with iSelect and BizCover
Finding a personal accident insurance policy is easy with iSelect in partnership with BizCover. Using the free comparison service you can compare business insurance policies from a range of insurers online, and select the policy that suits you.
*Please note that all insurance is subject to the terms and conditions set out in the policy wording or Product Disclosure Statement. The information set out above is general only and should not be relied upon as advice.
iSelect’s partnered with BizCover Pty Ltd (ABN 68 127 707 975: AFSL No.501769) to help you compare small business insurance policies. iSelect earns a commission from Bizcover for every product sold through the website or contact centre. iSelect and BizCover do not compare all brands in the market, or all products offered by all brands. iSelect does not arrange products from the brands we compare for you directly, but iSelect will refer you to our trusted partner, Bizcover Pty Ltd who can.
Any advice provided in this article or on iSelect’s website is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice iSelect gives you, having regard to your personal situation, before acting on iSelect’s advice or purchasing any product. You need to consider if the insurance product is suitable for you. Please read the Financial Services Guide before buying any insurance policy.