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When a serious accident occurs it's never expected and it can happen anywhere. You could be at home, out and about, or even on a holiday.
This is where personal accident insurance can help. It's a form of cover that protects you financially in the event of an accidental injury, so you can keep up with expenses and immediate debts.
An adviser can help you find cover from trusted life insurance brands.
Personal accident insurance can provide you cover in the event of injuries sustained from accidents. Some of the key benefits of taking out cover include:
There are a few types of personal accident insurance. How and when you are paid varies between these types of cover:
You're covered if you get into an accident that leaves you:
You may receive a lump sum payment or monthly income protection depending on whether your policy is:
Type of cover | What's covered? | Medical screening | Payout type | Can I get a quote on finder? |
---|---|---|---|---|
1. Standalone personal accident | Specific injuries due to accidents e.g. fractures, burns and dislocations |
| Lump sum | n/a |
2. TPD cover | Injuries and illnesses that leave you permanently disabled |
| Lump sum | Yes |
3. Accident-only income protection | Injuries that put you out of work temporarily |
| Monthly income replacement | Yes |
4. Income protection | Injuries and illnesses that put you out of work temporarily |
| Monthly income replacement | Yes |
Injury/disease | Percentage |
---|---|
Strains and sprains | 42.40% |
Musculoskeletal disorders | 13.70% |
Fractures | 8.80% |
Open wound | 7.50% |
Mental disorders | 5.80% |
Contusion with intact skin surface | 5.60% |
Deafness | 4.10% |
Hernia | 2.30% |
Dislocation | 1.60% |
Burns | 1.50% |
Other injury | 4.40% |
Other disease | 2.40% |
Source: Key Work Health and Safety Statistics, Australia 2014Learn more about workplace injuries and statistics in Australia
A sample policy could cover these types of injuries.
Accident type | What does this include? |
---|---|
Death & Total Disablement | Quadriplegia |
Accidental loss of life | |
Paraplegia | |
Disablement | Permanent total or partial loss of eye sight |
Permanent total or partial loss of hearing | |
Permanent total loss of use of one or two limbs | |
Permanent total loss of speech | |
Leg and arms | |
Fracture injuries | Thumbs, Fingers, Toes |
Skull | |
Jaw | |
Collarbone or Sternum | |
Kneecap and elbow | |
Wrist, Ankle, Hand, Foot | |
Ribs | |
Nose | |
Cervical e.g. neck |
The table above is for illustrative purposes only and is not indicative of all policies available on the market.
Consider taking out personal accident insurance if:
Reconsider your need for cover if:
Here are some of the perks you can get from taking out a personal accident policy:
Depending on the insurer, you may have access to additional features, such as:
Personal accident insurance does not generally cover:
To make sure you don't get a surprise denial when you need it most, we've detailed the most common reasons for rejection and what you can do to avoid them:
Personal accident insurance can benefit a wider range of Australians than you might expect. Some examples include:
Benefits are not restricted to paid work, and volunteer workers can get access to personal accident insurance in case they are unable to perform their duties. In this instance, the organisation they volunteer for is covered if they lose one of their volunteers for a period of time.
Self-employed workers
In addition, family day carers and other self-employed workers who don't usually have access to sick leave or other workplace injury compensation can receive benefits they would otherwise lack, such as:
Working a trade? Personal accident insurance for those in trade industries can provide financial protection should you fall ill, be injured or even pass away (for some policies). Depending on how risky your trade is, you may find it difficult to apply for income protection cover, so secure your income with accident insurance, instead.
Losing a star player during championship season can spell the end. As a result, many professional athletes are insured against injury by their team or sports club. If you're not quite at that level just yet but you still rely on your body to earn your keep, consider personal accident insurance for sports players. There's a range of policies no matter your chosen field – a professional dancer, for example, might get cover for broken bones and soft tissue injury for up to 52 weeks.
This depends on the type of personal accident insurance that you have:
Type of cover | Age of entry | Age limit |
---|---|---|
1. Standalone personal accident | 18 | 70 |
2. TPD cover | 16 | 64 |
3. Income protection | 18 | 64 |
Note: Exact age limits will vary between each insurer.
While some personal accident insurance policies may provide cover in the event of death, it's important to consider that there are some notable differences from life insurance. These include:
Personal Accident Insurance | Life Insurance | |
---|---|---|
Type of cover | Provides a lump sum, monthly or weekly benefit in the event that you are ill or injured in an accident and unable to work. | Provides a lump sum payment in the event of your death or if you have been diagnosed with a terminal illness with less than 12 months to live. |
Cover amount | Limited benefit amount and depends on your average income at the time of application. | Unlimited cover |
Continuation of cover | May be cancelled | Renewable until you turn 99 years old, provided that premiums are paid when due. |
There is no one "right" policy, however as a general rule of thumb:
There are several factors that can affect the cost of your personal accident insurance premiums, including:
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