What Is Personal Accident and Illness Insurance?
Personal accident and illness insurance protects you financially if you find yourself unable to work following a sudden accident or illness. With this insurance cover, you’ll continue to receive a portion of your income while you’re off work due to injury or illness, so you can recover while also keeping up with expenses.
To find out more about personal accident and illness insurance in Australia, contact All Trades Cover today.
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Why Is Personal Accident and Illness Insurance Important ?
Unfortunately, an unexpected illness or injury can occur at any time and you could easily find yourself in a situation where you’re unable to work. Stop for moment and think about the numerous financial obligations you have which will still be there if you’re not working. How would you keep up with mortgage and rent? Even if you have a good amount of savings, the last thing you want is to eat into this money to keep up with payments while you’re off work.
Personal accident and illness insurance gives you financial peace of mind so you can be confident that you’ll continue to receive an income while you recover. This is particularly important to consider for tradies who are self-employed as you won’t have access to paid leave entitlements.
Other advantages of personal accident include the following:
- No medical questions or tests
- Capital benefits in the event of permanent disability or death
- Premiums are generally lower than income protection
Get a Quote Today!
It only takes a few minutes. Get a quote from our friendly team at All Trades Cover today. Personal accident and illness insurance means that you’ll continue to receive a portion of your income if you can’t work following an accident or sickness.
What Does Personal Accident & Illness Insurance Cover?
At All Trades Cover, we provide personal accident and illness protection as part of our trade insurance pack. We offer an agreed value option which means you can nominate how much you receive during the benefit period up to a certain amount per week. You can opt for a benefit period of up to two years, depending on your age.
What Is Covered?
Insurance that covers you in the event that you are unable to work due to injury or illness.
- 24/7 cover
- Weekly benefit up to 2 years
- Claim excess period for 14 days (30 days for COVID-19)
- 21 days cooling off period
- For weekly benefits – ongoing medical certificates will be required as proof of injury – the cost of obtaining relevant certificates are to be incurred by the insured.
Inclusion example:
- Motor vehicle accident injuries (where alcohol/drugs are not found to be a contributing factor)
- Non-professional sport injuries
- Fall down stairs
What Isn't Covered?
Exclusion examples:
- Suicide (for capital/death benefit) on intentional self-injury
- Activities where drugs/alcohol are involved
- Pre-existing conditions
- Criminal acts
- Acts of terrorism
- Pregnancy
How Do I Know if I Need Personal Accident Insurance?
Generally, if your income pays a large portion of your monthly bills, you should consider personal accident insurance.
Other ways to know if you need this type of cover:
- You would need to hire help to take care of your home (clean, cook, care for family pets) while you are sick or injured
- You would need help with your children especially drop off and pick up for school or other extra-curricular activities
- Your pay is the only source of income in your household
At All Trades Cover, we provide personal accident and illness protection as part of our trade insurance pack. We offer an agreed value option which means you can nominate how much you receive during the benefit period up to a certain amount per week. You can opt for a benefit period of up to two years, depending on your age.
Contact the team at All Trades Cover today for an easy personal accident and illness insurance quote.
Could This Happen To You?
As a professional tradie, if you sustain a sudden injury or illness, and can’t work for a while, you’ll need financial protection. We understand the process of insurance for a professional tradesman and want to make it quick and as easy as possible.
As a tradesman, you rely heavily on your income. Following an accident or illness, you will receive a portion of your income if you are properly covered. Let yourself recover while you are protected financially.
Testimonials
FAQs
Waiting Periods
This is the amount of time you must be unable to work for until you are able to make a claim.
The options will vary depending on the insurer, but typically the options will include the following:
- 7 days
- 14 days
- 28 days
A shorter waiting period will get you on claim much sooner, but the cost of the cover will more than likely be higher.
Weekly Benefits
Also known as the benefit amount, this is the amount that will be paid to you each week for the period in which you are unable to work.
When selecting a weekly benefit it’s important to note that you may have to provide evidence in the event of a claim. There is no point insuring yourself for $2,000 a week if you can only prove $1,500 a week in income.
You should also note that benefits paid must be declared to the Australian Taxation Office and will be considered taxable income. So you should be covering your pre-tax income, not your after-tax income.
Benefit Period
This is the length of time you will continue to receive benefits for once you’re on claim.
The options vary from one insurer to the next, but a typical set of options will be as follows:
- 1 year
- 2 years
- 3 years
A shorter benefit period will result in a lower cost for the insurance, but of course that is also limiting your cover.
Personal accident insurance is somewhat similar to income protection, in that its main aim is to replace your income when you cannot work.
But there are some important difference:
Extended benefit period
Personal accident policies will generally provide a benefit period of up to 3 or 5 years (depending on the insurer) whilst an income protection policy can provide benefits up to age 65.
It can be a lot more expensive to have a benefit period running through to age 65, but if this is important to you, you should be looking at income protection rather than personal accident
Cancellable
One of the most important differences is that personal accident is cancellable, whilst income protection is non-cancellable.
This has nothing to do with you being able to cancel the policy, but the insurer being able to cancel it. Or more to the point, not having to offer a renewal.
With income protection, the insurer must continue providing cover as long as you keep paying your premiums. They can’t refuse to renew your policy regardless of how much of a risk you become.
But with personal accident insurance the insurer can decide not to renew your policy. If you start to become more of a risk or make a lot of claims, the insurer can simply not offer a renewal when your policy expires.
This can be a very big deal, but is often overlooked by tradies when weighing up their options.