Personal Accident & Illness Insurance - An Overview

Personal Accident & Illness Insurance - An Overview

What is Personal Accident & Illness Insurance?

There is nothing worse than having an accident and as a result, not being able to work and losing your income as well! An accident or illness can cripple your earning ability and lead to bad financial outcomes and significant financial loss. 

Personal accident and illness insurance provides financial coverage if you are not able to work and can’t earn an income due to an accident or illness. 

The appropriate insurance policy such as personal accident and illness insurance may cover you for any loss of income as a result of being unable to work due to an accident and injury or illness. 


Do you have to be injured at work to be covered by personal accident & illness insurance? 

Personal accident and illness insurance policies may cover you regardless of where you sustained your injury, be that at work or at home. If the business owner or worker is not covered by Workers Compensation Insurance then this type of policy offering can provide some coverage, at the same time offer an extra peace of mind.


Are personal accident and illness insurance policies only for the self-employed? 

One of the most important forms of cover for self-employed tradies is personal accident insurance, with optional cover for sickness. So if you can’t work and your business cash flows are drying up, a personal accident and illness policy can kick into gear and keep you afloat.

However, whilst personal accident and illness insurance does work well for the self-employed or tradies, it is an insurance policy that is open to all employees of most occupations.

What coverage can be included for personal accident and illness insurance?

Personal Accident and Illness insurance coverage usually includes:

  • 24 Hour Cover
  • Standard cover with up to 85% of the pre-disability weekly income that you earned
  • Agreed value options
  • Optional cover for business expenses and lump sum benefits


If you want greater coverage limits, reduced waiting periods and different agreed value options, then it is worth discussing your requirements and the available options with an experienced insurance broker. 


Can my insurer cancel my personal accident and illness insurance? 

Once you have taken out a personal accident and illness insurance policy, an insurer can choose to not renew or offer the same policy in the future. So whilst an insurer can’t cancel an insurance policy once it has been issued (unless it is due to disclosure reasons), your insurer may choose to not offer coverage to you in the future. 


Are there experts in personal accident and illness insurance?

If you’re wanting a more comprehensive policy option with longer and higher payable benefits we recommend contacting your financial planner to discuss your options further. Some policies to consider may include income protection and (TPD) total and permanent disability cover. 


General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

Abbie Wilson, National Insurance Brokers, ABN : 22165146789, AFSL : 233750 , AR Number: 443875, CAR Number: 461886

Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Abbie Wilson.

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Abbie Wilson

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