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As a self-employed worker, there is little support for you to fall back on if you are seriously injured. Personal accident insurance offers protection to ensure you still receive an income if an injury happens.
Note: if you prefer lump sum cover, you'll need to speak to an adviser.
An adviser can help you find cover from trusted life insurance brands.
Personal accident insurance is a type of cover that provides financial protection in the event that you are injured from an accident. Personal Accident insurance gives you peace of mind 24 hours a day, seven days a week, anywhere in the world, by providing you with cover from insured events. Personal accident insurance insured events include:
When you are self employed, you are not eligible for workers compensation.
Government bodies highly recommend that you take out cover for accident and sickness through a private insurer to provide financial compensation in the event of revenue loss while you are unable to work (business.gov.au, 2013).
Furthermore, most injuries and accidents occur outside of work and with no appropriate cover in place, you are leaving yourself and your business at risk financially.
Of course, none of us want to find ourselves the victim of an accident or succumbing to an illness but no matter how healthy or safe you think you are, the chances of this happening at some point during your self employed career are very real. There are many benefits to taking out personal accident illness insurance for self employed people. Some of these benefits are as follows:
While income protection will offer a benefit payment for both illness and injuries, accident insurance will only offer a benefit payment if the policyholder suffers an injury as the result of an accident and is unable to work. You read finder's full income protection guide here.
Details | Personal accident | Income protection |
---|---|---|
What events are covered? | Injuries | Injuries and illnesses |
How am I paid out? | Lump sum payment or income replacement | Income replacement |
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 occupation. Compared to income protection, there is generally no medical underwriting required as pre-existing illness are not relevant to accidents.
When you are self employed, you have to take out insurance cover that would otherwise have been covered by your employer, such as income protection and personal accident insurance. While, both these types of insurance protect your ability to keep earning despite of your disability and inability to work in your own right, there are some key features that you want to look out for personal accident insurance:
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