Finder makes money from featured partners, but editorial opinions are our own.
Accident and sickness insurance for the self-employed
An accident and sickness insurance policy is available if you're self-employed – it can offer you financial protection on an ongoing weekly basis if you can't work due to illness or injury.
{"menuItems":[{"label":"How does accident and sickness insurance work if I'm self-employed?","anchorName":"#how-does-accident-and-sickness-insurance-work-if-i-m-self-employed"},{"label":"Key policy benefits self-employed workers should look out for","anchorName":"#key-policy-benefits-self-employed-workers-should-look-out-for"},{"label":"What features should self-employed workers look out for?","anchorName":"#what-features-should-self-employed-workers-look-out-for"},{"label":"Frequently asked questions","anchorName":"#frequently-asked-questions"}]}
What you need to know
Short-term cover that tends to only payout for up to 1 or 2 years.
You need to give the insurer details of your employment status, and the terms you are offered will differ from regular accident and sickness insurance.
A range of medical conditions will be excluded by these policies, such as pre-existing conditions, along with ones that may arise, like stress.
How does accident and sickness insurance work if I'm self-employed?
As a self-employed worker, there is little support for you to fall back on if you are seriously injured or become sick. Personal accident and sickness insurance offers protection to ensure you still receive an ongoing income.
It can provide income replacement that's paid each week. Or, at times, a lump sum. Cover can include accidental death, injury or disability.
There are different ways to get cover. You can tailor your policy to cover both personal accident and sickness, or just accidents only
No medical exams. Coverage can usually be put in place without having to undertake any medical or blood tests.
Key policy benefits self-employed workers should look out for
A safety net for self-employed workers. Self-employed workers don't get the same benefits from employers offered to other workers such as workers' comp, sick pay, holiday leave or long service benefits. If your business was to stop running, they could lose existing clients, be unable to cover their business overheads and have no stream of income to cover bills.
Peace of mind. As a self-employed person, things can be very unpredictable in terms of work and income. The last thing you want is to add to the problem by failing to protect your finances in the event that you can't work and earn due to an unexpected sickness or injury.
Choice of plans. You will find a great choice of personal accident illness insurance self-employed plans available from a number of providers, which means that you can boost the chances of finding the right plan for your needs whilst also staying within your maximum budget.
Choice of benefit. The benefit that is paid out in the event of a claim may be paid out in different ways. So, by choosing the right plan you can dictate whether you want the benefit as a lump-sum benefit or as an ongoing payment – note that weekly payments are most common.
Avoiding unnecessary financial troubles. If you weren't able to work due to sickness or injury, and you had no protection in place, you would really suffer financially, as you would have no way – other than dipping into any savings – to pay the bills, rent or mortgages, along with food bills and other essential costs.
What features should self-employed workers look out for?
There are some key features that you want to look out for personal accident insurance, including:
Premiums are tax-deductible: When you're in business for yourself an important aspect of everything you do is based around lowering your taxation at the end of each financial year and personal accident insurance can help you do this as the premium you pay for the cover is tax-deductible.
A lump sum benefit amount if you become permanently disabled: If you are seriously injured and become permanently disabled, you are entitled to receive a lump sum amount. However, this will affect the tax treatment of your premiums.
Benefit period: Applicants must assess what a suitable benefit period is for their situation. Generally, you can apply for a benefit period of up to 52 weeks.
Waiting period: The amount of time that the injured policyholder must be unable to work in order to receive a benefit payment, generally after 30 day excess period.
Policy exclusions:
Benefit payment is usually only provided for injuries that have been caused directly by an accident.
Injuries should be externally visible and if necessary, will be verified by a medical practitioner.
Accident policies will generally not cover the policyholders for any illnesses, dental injuries and injuries that have been caused by self-infliction or attempted suicide.
The injury will usually have to be within 60 days from the date the policyholder stopped work.
Why you can trust Finder's life insurance experts
We're free
You pay the same as buying directly from the life insurer. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare policies.
We're experts
Our team of life insurance experts have researched and rated dozens of policies as part of our Finder Awards and published 250+ guides to make it easier for you to compare.
We're independent
Unlike other comparison sites, we're not owned by an insurer. That means our opinions are our own and we work with lots of life insurance brands, making it easier for you to find a good deal.
We're here to help
Since 2016, we've helped 270,000+ people find life insurance by explaining your cover options, simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.
Frequently asked questions
Both income protection and TPD cover are considered more comprehensive forms of cover than sickness and accident insurance. That being said, they are more expensive and the application process can be more time-consuming. It's ultimately up to you to decide on the best type of insurance for your needs.
No. For one, private health cover can cover some pre-existing conditions following any waiting period has been served. With sickness and accident insurance, cover often excludes all pre-existing conditions. Health insurance offers cover for a range of events such as hospital expenses, out-of-hospital care and prescriptions that aren't part of the pharmaceutical benefits scheme (PBS).
Personal accident insurance can be a good option for workers that have struggled to find a suitable insurance option in the past as a result of a pre-existing medical condition or the nature of their job. Compared to income protection, there is generally no medical underwriting required, in part, this is because pre-existing illnesses are not relevant to accidents.
When you're self-employed, you are not eligible for workers' compensation. Furthermore, many injuries and accidents occur outside of work and, with no appropriate cover in place, you are leaving yourself and your business at risk financially.
James Martin is the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, WIN News, Insurance News, 7NEWS and The Guardian. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146).
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan and read any disclosure documents (such as any Target Market Determination (TMD) and/or Product Disclosure Statement (PDS)) issued by the provider before making a decision.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
