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Personal accident insurance can provide you with invaluable financial cover when you’re out of work and need it the most. It's important to find the best cover, although it may feel easier said than done given the many policy options to choose from. Luckily, that's where Savvy can help.
By comparing policies from Australia's leading insurers with us, you can weigh up the pros and cons of personal accident products to see which offers the most benefits at the lowest cost. This allows you to find a deal that gives you the best bang for your buck. Start comparing with Savvy and get a quote through us today.
Personal accident insurance is a specific kind of life insurance cover that provides you with a financial safety net if you're involved in an accident and need to take temporary or permanent leave from work. When choosing personal accident insurance, you can take out cover in a larger income protection insurance bundle or as a standalone policy. The benefit of taking it out as a bundle is that your policy will be more extensive and provide cover for a range of illnesses in addition to injuries.
Depending on the type of cover you take out, you can receive your benefit amount as either a lump sum or through fortnightly or monthly repayments. Your benefit amount can be up to as much as 75% to 85% of your income.
To make a claim on your personal accident insurance, it’s important you get in contact with your insurer straight away to be begin the process. For your claim to be approved, you’ll be asked to supply various documents including:
Personal accident insurance can be taken out as the following types of cover:
Inclusions on your personal accident insurance will vary depending on the type of policy you choose and the type of cover you need. You may choose to opt for cover which gives you financial support if you’re out of work due to injury, illness or both. Moreover, optional extras for your cover can include disablement benefits, business expenses cover or death benefits.
You can be covered for injuries sustained from a range of situations including tripping over a roadside kerb or falling off a ladder in your backyard. To understand the inclusions in their entirety, make sure you read your policy’s Product Disclosure Statement (PDS).
Depending on whether you take out a standalone personal accident insurance policy or cover as an extensive income protection package, your inclusions can include an array of injuries or illnesses including the following:
Aside from purchasing a standalone policy, you can also choose to bundle several life insurance policies. This allows you to purchase more than one policy. For example, you may roll income protection, life insurance and personal accident insurance into the one policy so you're covered for a whole range of events.
Some of the areas you may be covered if you chose to combine your policies include:
What isn't included in each personal accident insurance policy may vary, but there are common exclusions which apply to most policies. These include:
There are a number of differences between workers compensation insurance and personal accident insurance in terms of how they function and can help you financially. Here’s how they vary:
Workers compensation insurance:
Personal accident insurance:
Life cover can pay a nominated beneficiary a lump sum if you’re diagnosed with a terminal illness or pass away. This type of insurance can provide your immediate family or another loved one some financial assistance to cover funerals, medical costs and day-to-day expenses.
If you’re injured or too sick to work for an extended period, income protection insurance is designed to help you focus on your recovery. You can be covered for up to 70% of your usual wage for a chosen period, such as five years or up to age 65, depending on the level of coverage you buy.
This type of insurance is designed to offer cover to those who are permanently disabled by injury or illness and are no longer able to work. You can choose to take out cover for an inability to work in your current job or in any role suited to your qualifications.
Trauma insurance is a type of policy which provides you with a lump sum payment in the event of a critical illness or major accident. The conditions eligible for claims will be outlined in your insurer's PDS, but can include cancer, heart disease, severe head trauma and cardiovascular disorders.
It’s important you compare the inclusions and exclusions as they will vary between policies. Your cover should insure you for a range of injuries or illnesses to protect you in a wide-range of scenarios. In addition, consider the optional extras which are available. This will help extend your cover to include a further range of incidents or accidents.
If you’re injured or ill and out of work, you don’t want to be struggling to get by with a minimal benefit amount. Make sure your cover will comfortably support you if something does go wrong so you don’t have to worry about your finances.
You never know what situation could lead to an accidental injury or illness. Any range of activities at home, work or simply out and about could result in an injury. It’s vital that your injury or illness is covered and you aren't left regretting your choice of personal accident insurance cover.
Make sure you choose a policy which provides a sufficient benefit period. If you are injured or seriously ill and require benefit payments to get you by, you want these payments to last as long as possible. If there's any risk of your recovery taking longer than two years, it might be worth considering your options (although this will be more expensive).
The shorter the waiting period of your cover, the quicker you’ll be able to make use of your cover in the event of injury or illness. Waiting periods for personal accident insurance may range from two weeks to three months.
Taking out personal accident insurance will ensure you get the necessary financial support if you're temporarily or permanently unable to work.
If you’re injured or ill and out of work without an income, you may rush your recovery to get back to work. Personal accident insurance will replace your income and allow you to shift your focus on your recovery and your own health.
When you’re physically and emotionally strained, the last thing you want to worry about is your finances. Taking out personal accident insurance will give you, your partner and your family peace of mind that your insurance will pay for things like medical and living expenses or a mortgage.
Like many forms of insurance, your personal accident insurance will be subject to waiting periods before you can make a claim on your cover. This period is often anywhere from two weeks to three months, and if you try to make a claim during this period, it will be rejected.
Restricted to certain age requirements
All personal accident insurance policies will have age restrictions in place. Under many policies, once you reach the age of 65 you will be charged extra every year which follows.
Benefit period restrictions
When you make a claim, the maximum benefit period for which you will receive fortnightly or monthly payments is either two or five years, which will differ between insurers.
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Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.
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