Accidental Death and Serious Illness Insurance

Compare accidental death and serious illness insurance policies from Australian insurers

It’s an unfortunate fact of life that disaster can strike when you least expect it. You may have a happy and healthy family, a great job and wonderful prospects, but death or serious illness can strike at any time and turn your world upside down.

What does accidental death and serious illness insurance cover?

This type of cover offers a benefit payment to help you and your family survive financially in the event of:

  • Death
  • Serious Illness
  • In some cases serious injuries

You can use an accidental death or serious illness insurance benefit payment to repay debts, make mortgage repayments, pay medical expenses or simply maintain and protect your family’s financial position.

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Coverage is the amount of money that you will be paid in the event of a claim. An insurance consultant can help you determine an appropriate amount. Calculator
Provides a lump sum payment if you become totally and permanently disabled and are unable to return to work.
Provides a lump sum payment if you suffer a serious medical condition. Cover can be taken out for 40-60 medical conditions depending on the policy you choose.
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What exactly is Accidental Death and Serious Illness Insurance?

Accidents do happen and they can change your life for the worse in an instant. Accidental death and serious illness insurance is designed to lessen the financial impact of unexpected events on your family.

If death or serious illness strike, you can get covered with a lump sum payment to help you stay on top of your finances. You can use the benefit payment to repay debts, make mortgage payments, manage ongoing expenses, look after your rehabilitation or any other necessary expenses. Accidental death and serious illness insurance cover can be vital to ensure the protection of your family’s financial security, offering peace of mind that you will be covered should the unexpected occur.

What type of illnesses are usually covered?

However, it’s important to remember that this type of insurance cover is not designed to act as a replacement income but merely to offer a lump sum payment when needed. Your injury or death must be the result of an accident, for example a car crash, while only specified serious illnesses will be covered. Conditions covered will vary from one insurer to the next but will generally include medical problems such as;

  • Paraplegia
  • Quadriplegia
  • Blindness and deafness
  • Illnesses such as heart attack, cancer and stroke

What is usually covered?

  • Accidental Death. If the life insured dies as a result of an accident, your insurance policy will offer a lump sum benefit payment. The death must occur before the policy expires and each policy will feature a minimum and maximum benefit amount. This payment can help your family manage financially in the aftermath of your death, ensuring they don’t have to worry about money and can simply focus on the grieving process.
  • Accidental Serious Injury. If you suffer one of many specified injuries as a result of an accident, this type of cover will ensure you receive a lump sum benefit payment. It’s important to point out that the injury must occur within 12 months of you being involved in an accident. The serious injury must be diagnosed by a medical practitioner and will need to be confirmed by your insurer’s medical advisers before a claim will be paid. Injuries generally covered under accidental serious injury insurance include quadriplegia, paraplegia, hemiplegia, blindness, deafness, and the total and permanent loss of the use of two limbs.
  • Serious Illness. If you are diagnosed with a specified medical condition, a serious illness insurance policy will provide a lump sum payment. Conditions typically covered under this type of policy include heart attack, cancer and stroke, while the full list of covered conditions can vary from one insurance policy to the next.

What are the exclusions?

It’s important to closely read policy documents when shopping for accidental death and serious illness insurance because a range of exclusions can apply. These typically include:

  • Claims arising from an intentional self-inflicted act will not be paid.
  • Claims will often not be paid if you work in a specific occupation. These include working at heights, underground occupations in the mining industry, jobs that expose you to firearms, jobs that involve working with explosives, armed forces positions, or positions working offshore in the oil, gas or petroleum industry. Many insurers class certain occupations as being simply too risky to cover.
  • Claims arising from your consumption of alcohol or drugs will not be paid, unless those drugs have been prescribed by a doctor and taken as directed.
  • If your claim arises as a result of war or civil insurrection, it will typically not be paid by most insurers.
  • Contracting HIV or AIDS will most likely exclude you from a serious illness insurance benefit payment.
  • Many serious illness insurance policies will not pay a claim if you do not survive a certain period (for example eight days) without life support after the occurrence or diagnosis of a condition.
  • If you engage in aviation activities or aerial pursuits other than being an ordinary fare-paying passenger, for example skydiving, your claim will not be paid.
  • Claims will also not be paid if you are involved in motorsports, mountaineering or deep-sea diving.
  • If your clam arises as a result of your involvement in any illegal or criminal activity, don’t expect to receive a benefit.
  • Claims relating to suicide or attempted suicide are always excluded from accidental death and serious illness insurance policies.
  • If your claim is related to your involvement in any professional sport, insurance providers will generally not provide a benefit payment.

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William Eve

Will is a personal finance writer for specialising in content on insurance. While he cannot give personal advice to clients, Will enjoys explaining the intricacies of different types of protective cover to help individuals and businesses find affordable cover that won't leave them underinsured.

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