Personal Accident Insurance
Accidents inevitably occur, and by nature, they are unexpected and challenging to plan for. Not only can they be physically and mentally damaging, but the aftermath can be expensive and potentially disastrous for a person or business if they do not have money saved up, making them hard to recover from financially. Fortunately, there are ways to prepare for accidents, even if we do not know when they will occur or what they will be, by personal accident insurance.
Insurance is a type of risk management opportunity whereby the insurance company takes care of the financial aspect of an accident, up to the price stated in the policy, in exchange for a premium. This is a way of preventing financial loss should a terrible event occur.
There are a few different types of personal accident insurance.
Accidental Death Insurance
Accidental death insurance is encouraged for persons that work incredibly high-risk jobs, and as a result, have a more complex insurance policy that is consequently more expensive. This means that should you pass away if it was unintentional and had no concrete causes inflicting it. You would be entitled to the payout. Everyone is entitled to accidental death insurance as long as you are aged 18-80, and in most cases, do not even require to take a medical exam.
However, it is different to life insurance as fewer causes of death are included. Accidental death insurance covers drowning, car accidents, falls and machine-operated related accidents. Thus, employees who drive very often, operate heavy and dangerous machinery, or are exposed to hazardous chemicals are recommended. Conversely, health-related causes of death like cancer or other diseases, self-inflicted intentional actions like suicide, or alcohol and drugs death will not be covered.
2. Accidental Permanent Injury Insurance
Accidental permanent injury insurance is a cover that provides finances to cover a permanent injury that is a result of an unintentional accident with no known causes. Should you suffer from a permanent bodily injury like amputation or paralysis, be permanently affected by a large percentage of blindness or loss of hearing, or be a victim of any type of accidental event at work or other, your policy will pay out a certain amount based on the plan you have chosen.
As long as you are aged 18- 80, have suffered from the accidental injury within the stated period since the accident occurred, reside in the United Kingdom and pay your premiums promptly, your hospitalization and treatment costs will be covered up to the sum you have agreed on. Causes not covered by accidental permanent injury insurance are injuries that are not caused by accidental events, gradual deterioration of the body due to age, motorsport injuries and alcohol or drug-related injuries.
3. Hospital Cash Insurance
Injuries starting from when you first begin your policy, or pre-existing ones two years after your policy starts, are covered by the hospital cash plan. This indicates that your hospital stays or treatments are paid for up to the maximum of your policy, and you will receive this support as long as you pay your premium regularly.
The hospital operates within the United Kingdom. Work-related accidents that your GP or a doctor claim need treatment are covered only if the treatment is necessary or severe, as long as they are not self-inflicted, for instance, drug or alcohol abuse-related. Additionally, you can usually add your family members like spouses or children onto this plan, depending on the options of the individual insurance company.
What is and is not Covered
Should you meet any of the conditions of the above policies, like accidental death, permanent injury, or need for hospital treatment cleared by a doctor, you would be eligible to receive monetary compensation for your accident.
This is as long as the event occurring was accidental and not self-inflicted, such as death or injury from drowning, falling, traffic incidents or natural disasters. Most jobs would provide you with this cover if your occupation is particularly hazardous and you take part in dangerous activities due to your work. It is encouraged as it would be more cost-effective to pay a premium, primarily if your work covers it, than to go without it and suffer potentially unrecoverable costs that leave you unable to survive.
This money would reimburse you for any income you would lose should you be unable to work due to the injury. It will also pay for your hospital stay and treatment expenses, provide death benefits to the family if a member has died, or deliver money for business expenses used to maintain the company.
On the other hand, illnesses that began before the insurance policy, self-inflicted activities, drug or alcohol-related accidents, or sports-related injuries are not covered.
What Do I Need to Consider
The premium you pay each month is dependent on a few different factors. For example, if you work a high-risk job that has previously had a lot of injury-related claims, the monthly price would be considerably higher. In addition, each policy has different plans with different levels of severity. If you would need your payout to be higher as your living expenses are high should you be injured or pass away, the premium would be more expensive. Lastly, you should consider the ‘waiting period’, more specifically how quickly the insurance policy would send you the money, as this can vary from a few days or a month, the latter being cheaper.
In Conclusion – Personal Accident Insurance
Different companies offer different types of plans. Overall, personal accident insurance covers a range of unintentional events that cause illness, permanent injury or even death. The payout can then be used for hospitalization like the price for hospital stays, treatments like emergency services or diagnostic testing, or even disability and death benefits. In the UK, the most popular insurance companies for this type of insurance are Simply Business, Aviva and Compare the Market, with costs as low as £2 monthly depending on the level of cover; the highest covers can exceed £150,000 payout.
Find out more about Personal Accident Insurance here.
Other useful links about business insurance:
Business Contents Insurance
Business Building Insurance
Employers’ Liability Insurance
Remember to Compare Your Business Costs is here to help your business every step of the way from business advice, or saving you time and money on your business purchases such as: