accident-sickness

Sickness and Accident Insurance

Cover your ongoing expenses in the event of a serious illness or accident.

No matter what job you do, you depend on your wellbeing to cover the bills and put food on the table. Having to take time off work for an extended period can have a devastating impact on your own livelihood and that of your family.

Accident and Sickness Insurance helps you keep on top of your expenses while off work so you don't have to dip into your savings. Most policies will cover you for;

  • Serious illness or injury
  • Permanent total disablement
  • Loss of a limb
  • Death (if caused by accident)

Get sickness and accident quotes at the right price

Name Product Short Description Maximum Monthly Benefit Maximum % of Income Covered Maximum Benefit Period Waiting Period
Cover up to 85% of your Income (up to $10,000 per month) if you can’t work due to sickness or injury. Cover for 1,000 job types - full-time, part-time and self-employed.

$10,000
85%
5 years
14, 28, 60, or 90 days
Receive up to 30% off in your premiums if you’re in good health and meet BMI qualification tests. T’s and C’s apply.
$10,000
85%
24 months
14 or 28 days
Take out a policy and get a $100 bonus gift after holding cover for 2 months. T's and C's apply. Offer ends 31 March 2019.
$10,000
85%
5 years
14, 28, 60 or 90 days
Get income protection cover (up to 75% of your income) without a medical test. Plus, Medibank health insurance members can save 10% off premiums.
$7,500
75%
5 years
30 or 90 days
Cover up to 75% of your monthly income if you can’t work due to illness or injury, up to a maximum of $10,000 a month.
$10,000
75%
5 years
30 or 90 days
Cover up to 75% (to a maximum of $30,000) of your monthly income with NobleOak Income Protection.
$30,000
75%
2 years or to the age of 65
30 or 90 days
Cover up to 75% (to a maximum of $10,000) of your monthly income with Guardian Income Protection.
$10,000
75%
5 years
30 or 90 days
Join Qantas Income Protection and earn up to 100,000 Qantas points. T&CS apply including minimum premium and policy hold periods apply to earn points.
$12,000
75%
5 years
2, 4, 13 weeks or 2 years
Receive up to 75% of your income (up to $10,000 per month) if you're unable to work due to serious illness or injury.
$10,000
75%
5 years
30 or 90 days

Compare up to 4 providers

What can Accident and Sickness Insurance cover?

An accident and sickness policy will typically provide either a monthly benefit or a lump sum payment.

Benefit typeType of event
Monthly benefit
  • A serious event that leaves you unable to work
  • A serious injury that leaves you unable to work
Lump sum benefit
  • An accident leaves you disabled permanently
  • You loose a limb
  • An accidental death

Accident and sickness insurance: Quick tips

Average cost of cover: $53 per month

In Australia, income protection that covers accident plus sickness can cost roughly 1-3% of your monthly income for a 35 year old. Our research indicates this can cost around $53 per month of a 35 year old.

Learn more

Can I get accident and sickness income protection?

Yes you can. Income protection insurance can cover you when you suffer a sickness or accidental injury and are unable to work as a result. When this happens, income protection cover offers a monthly benefit as a replacement for your normal income, usually covering up to 75 per cent of your pre-disability income.

With income protection cover in place, you don't have to worry about making ends meet while you are unable to earn an income. Instead, all you have to do is focus on your recovery and getting things back to normal.

What is the maximum age of eligibility?

The maximum age at which you can take out sickness and accident insurance cover varies between insurance providers. However, as a general rule, Australian residents aged from 18 to 75 years of age are typically able to apply for cover.

Most sickness and accident insurance policies will also stop providing cover once you reach a certain age, usually 90 years. Check your PDS for the eligibility requirements of your policy.

Is sickness and accident insurance tax deductible?

In many cases, the premiums you pay towards sickness and accident insurance are tax deductible. In order to claim a deduction, you'll need to be able to show that the premiums are an expense incurred in order to provide cover for your ability to earn a taxable income.

However, if you hold accident insurance through your superannuation fund, you won't be able to claim your premiums as a tax deduction. Keep this in mind when deciding how you will take out cover.

What is accident-only insurance?

Accident Only Income Protection Insurance will offer cover only for accidents that the policyholder has suffered and forces them to take time off work longer than the waiting period. The policyholder will begin to receive a benefit of 75% of their regular income if they are forced out of work for a period longer than the waiting period.

What are the benefits?

  • Cover is cheaper than Income Protection Insurance
  • Many people feel they are more likely to be forced out of work by a serious accident than an illness
  • Cover does not require medical underwriting
  • The individuals smoking status does not matter

Is accident only cover right for me?

While there are certain benefits, applicants should be fully aware of how this type of cover could leave them exposed in certain areas e.g. sickness. It is essential to always read the product disclosure statement and be fully aware of all features and benefits.

Learn more about accident only insurance

What's the benefit of sickness and accident insurance if I'm self employed?

Sickness and Accident Insurance provides an obvious benefit to self employed workers that are not covered under group policies from their employer. If you were suddenly unable to keep your business running through your own sickness or injury, a sickness and accident insurance could be your only financial survival opportunity.

Income protection for the self employed

A sickness and accident insurance policy will give your up to 75% of your gross income, to ensure you are able to continue paying your bills while incapacitated as well as keep food on the table. The reason why the amount paid is restricted to 75 percent of your income is that there still has to an incentive for you to return to work once you have recovered.

While it can be more difficult for self-employed workers to find a provider that is willing to offer cover insurance cover, if the worker has previously been employed in their field as an employee, they can often apply for an indemnity style policy. This is usually only necessary for workers that have been self-employed for less than 12 months. After this period, the worker will usually be able to apply for an Agreed style policy.


What are the drawbacks of personal accident and sickness Insurance?

Despite these benefits, applicants need to remember that their policy can be cancelled at any time. Personal Accident Insurance should be viewed as a basic type of cover with a limited range of protection. There really is no substitute to the level of cover offered on an Income Protection Plan.

  • Benefit can be subject to change: People who take out personal accident insurance cover are generally restricted to an indemnity styled product. This means that their benefit will be subject to change depending on any fluctuations in their income in the last 12 months. This is not the case for Income Protection where applicants also have the option to take out policies on an agreed value basis which ensures their benefit will remain the same as that which was initially applied for.
  • Limited Range of Cover: Personal Accident Insurance policies do not offer the same degree of coverage to that of Income Protection Insurance. The additional benefits and features found with Income Protection can ensure the policy is tailored to match the customers needs.
  • Benefit Periods: Personal Accident Insurance will only provide policyholders a benefit period of up to five years whereas Income Protection will provide cover up to the age of 65.
  • Different Benefit Periods: Personal sickness and accident insurance will have a defined waiting and benefit periods for sickness and for accident. Income Protection policyholders will be covered for both illness and injury until the age of 65.

What types of sickness and accident claims are people making

Sickness claims

ConditionTotal % of claims (males)Total % of claims (females)
Cancer62.10%85.20%
Ischaemic Heart Disease16.30%2.50%
Benign Brain Tumour5.60%2.70%

Source: General Reinsurance

Accidental injury claims in the workplace

Injury Percentage
Strains and sprains42.40%
Musculoskeletal disorders13.70%
Fractures8.80%

Source: 2014 Key Work Health and Safety Statistics

What are the top causes of accidents in Australia?

In Australia overall:

CausePercentage of total causes
Falls40%
Other unintentional causes32%
Crashes during transport12.2%
Self-harm6.1%
Assault4.7%
Thermal causes1.3%
Poisoning from pharmaceuticals0.6%
Poisoning from other substances0.4%
Drowning0.1%

2012–13 hospitalised injuries in Australia, Australian Institute of Health and Welfare.

Your frequently asked questions

Compare sickness and accident insurance

Richard Laycock

Richard is the Insurance Editor at finder, and has been wrangling insurance Product Disclosure Statements for the last 4 years. When he’s not helping Aussies make sense of the fine print, he can be found testing the quality of Aperol Spritzes in his new found home of New York. Richard studied Journalism at Macquarie University and The Missouri School of Journalism, and has a Tier 1 certification in General Advice for Life Insurance. He has also been published in CSO Australia and Dynamic Business.

Was this content helpful to you? No  Yes

Related Posts

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Ask a question
Go to site