Personal Accident and Sickness Insurance explained
What is Personal Accident & Illness insurance?
In simple terms, this type of insurance policy covers your lost income or wages if you are injured or become sick and can't work for a period. The sickness section of the cover is optional and some insurers now offer optional business expenses cover as well.
Who should consider this type of insurance?
Personal Accident and Illness cover is ideal for self-employed people, business owners, and Directors who are unlikely to be able to access Workcover.
An accident that causes a long-term injury making it impossible for you to work in your business is the last thing you need. This type of policy safeguards your income at a time when you are already under pressure.
What does this type of policy cover?
- 24/7 cover for injury,
- optional cover for illness,
- optional business expenses,
- 85% of your wage/income as per your last ATO return or a nominated amount you choose,
- benefit payments for up to 2 years, and
- lump sum capital benefits for death which are paid to your beneficiaries.
What doesn't it cover?
Insurance doesn't cover everything. There are exclusions and these can vary between insurers. Typically a Personal Accident and Illness policy won't cover you for:
- Participation in professional sports and some recreational high-risk activities,
- some high-risk occupations, and
- pre-existing medical conditions or injuries.
What is the excess?
Personal Accident and Illness policies have a "waiting period" (after the injury/sickness) before you can make a claim. You can choose the length of time that suits your financial commitments.
Typically, these options are 7, 14, or 28 days.
How do I get a quote?
There are no medicals required and the process is quick and easy. Click here to access the quote request form or call us on 0473 007 606 for a chat.
The above information is very general in nature and should not be considered as personal advice, for a more tailored discussion about your circumstances please call us for a chat.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Reef Insurance Brokers Cairns.