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Compare personal accident insurance
Get extra income after an accident for those with high-risk jobs or hobbies, though it's more restrictive than disability or life insurance.
If you’re injured from an accident, accident insurance offers payout that can cover anything from medical bills, childcare or anything else you need to pay for.
7 reasons to get personal accident insurance
If you’re injured in an accident, lost income and unexpected medical bills can create financial hardship. Some reasons to consider personal accident insurance include:
- You need extra medical coverage. This can include the costs of rehab and what’s not covered by your health insurance.
- You have some medical issues. This a viable option if you’ve been refused life insurance in the past.
- You have a risky hobby or job. Accidents could happen, especially if your hobbies include physical activity and potentially dangerous situations.
- You have a low budget. A policy can be as little as $15 a month depending on factors like where you live, your age and how much you coverage you’d like.
- You don’t have the savings. If you suffer an accident and aren’t able to work as a result, your policy can provide financial assistance.
- You want to be protected until you retire. Choose term lengths that can cover you until retirement so you won’t have to dip in to your retirement savings and investments in case of an accident.
- You’re a contract employee or self-employed. If your job doesn’t allow for sick leave, accident insurance could protect your finances if you’re unable to work.
What type of accidents am I covered for?
The accidents that are covered varies between insurers. Examples of common injuries you could be covered for are listed below:
|Accident Type||What does this include?|
|Accidental death and dismemberment|
|Accidental loss of life|
|Permanent total or partial loss of eye sight|
|Permanent total or partial loss of hearing|
|Permanent total or partial loss of one or two limbs|
|Permanent total loss of speech|
|Legs and arms|
|Thumbs, fingers and toes|
|Collarbone or sternum|
|Kneecap and elbow|
|Wrist, ankle, hand and foot|
Am I covered for accidental deaths too?
Accident insurance is not accidental death insurance where a benefit payment is provided for accidents that result in the policyholders death. Some personal accident insurance policies may also cover accidents that resulted in death. Read the terms and conditions of your policy to have a clear understanding of what you’re covered for.
When am I not covered?
Personal accident insurance does not generally cover:
- Injuries which have been self inflicted
- Dental injuries
- Accidents due to prior illnesses
- Injuries that have occurred while committing crime
- Dangerous behavior
- Injuries under the influence
- Injury is the result of a pre-existing condition or injury
- Age limits for coverage — often older than 70
Other benefits of accident insurance
Having accident insurance has other benefits including:
- Premiums are tax deductible. You can claim your premiums on your taxes if what you’re paying comes out of your pocket — and not through your employer.
- You choose how your benefit is paid. You can choose to receive your benefit as a lump sum payout to help with upfront medical expenses or as an ongoing monthly income to help with your living expenses.
- Disability benefits are included. Most personal accident insurance policies include a benefit payout for a disability. For example, if you suffer a total loss of speech, hearing, sight or the loss of the use of a hand or a foot, you’re considered to be eligible for a total and permanent disability benefit.
- Use your payout to cover any costs. Use your benefits to cover any costs you incur as a result of your accident. This can include counseling, rehab, childcare, clothing or transportation.
What determines the cost of coverage?
There are several factors that can affect the cost of your accident insurance premiums, including:
- The benefit period. Longer benefit periods attract higher premiums.
- Your occupation. People who work in high-risk occupations generally have to pay more.
- Your benefit amount. The higher the benefit amount you’re eligible to receive, the more you’ll pay.
- Your age. The older you are, the greater your risk of accidental injury and higher your premiums.
Compare alternatives to accident insurance
If you think you couldn’t afford to pay for bills or extra expenses after an accident, personal accident insurance might be right for you. Consider your lifestyle, savings and other coverage when deciding on a policy.
Shop around and research in order to find the policy that’s the right fit for your lifestyle.
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