Accident and Sickness Insurance is a type of Income Protection. It helps to cover your monthly earnings if you can’t work due to illness or injury.
What Is Accident & Sickness Insurance?
Accident and Sickness Income Protection Plan is a personal protection insurance plan that is related to you, your health and income. It offers a financial safety net in case you get injured or have an injury that puts you out of work. This usually leads to a loss of much-needed income to support your lifestyle, bills and outgoings. This is only accessible to workers, whether they are employed or self-employed. When you work and earn a taxable income you can purchase Accident and Sickness income protection. It will provide insurance against injuries, illnesses and incidents which are not already identified.
What Does Accident & Sickness Insurance Cover?
Insurance for Accident and Sickness is an insurance policy that protects you from unexpected accidents, injuries or diseases that take you out of work. If you can’t work because of injury, accident or illness you can make a claim.
Do I Need Accident & Sickness Insurance?
Will you have to pay monthly bills such as mortgage, rent, credit cards, loans, vehicle finance or debt reduction plans? What are you spending every week on grocery shopping, petrol, energy, internet, mobile bills, Netflix, Spotify, car insurance, school fees …?
As you can see, the list is infinite and can go on and on. When you’re the only one who brings an income to the household then you should seriously consider protecting that income. The current statutory sick pay is £94.25 per week for a maximum of 28 weeks. So, maybe you should ask yourself again if you require accident and sickness cover, after considering the above?
When Can I Claim On Accident & Sickness Insurance?
You can claim for an Accident and Sickness income protection policy immediately. When your scheme is put at risk today and you are unfortunate enough to suffer injuries or become ill tomorrow, then your claim will be paid according to the regular checks. This period which needs to elapse before the claim is paid is known as the excess, deferment or waiting period. You can choose your excess to match your own personal needs or situation.
If you do not receive a sick pay from your employer or you are self-employed, you will want to pick your cover to start immediately as you sign out from work. However, if you receive sick pay for a period of time from your employer or if you have some savings left behind you can choose to postpone your claim. When it comes to personal protection insurance, the quicker you apply for a claim to be paid ,the more expensive your Accident and Sickness income protection policy will be monthly.
How Much Does Accident & Sickness Insurance Cost?
The cost of an Accident and Sickness Insurance Policy varies significantly depending on several different factors for Eg;- your age, job, medical history, height, weight, whether you smoke or not. It also depends on how quickly you seek payment of your claim and how long it will be paid for. You may also opt to index your scheme. Allowing your cover to be connected to the retail pricing index rising in line with inflation. This ensures that your cover will rise annually in line with inflation, and so will the policy’s monthly costs.
To find out more about protecting your income and your health, contact a member of our team at WIS Business Protection.
