Accident and sickness insurance
Accident and sickness insurance can be a short-term or long-term protection policy that replaces your income if you cannot work following injury or illness.
An income protection policy covering accident and sickness can pay out anywhere between 50-70% of your gross earned income to help you meet your monthly bills and maintain your standard of living.
With income protection insurance you can cover:
- Your mortgage or rent payments
- Council tax and utility bills
- Loan repayments such as car finance
- Internet, phone and TV contracts
- General living costs like food, clothes and travel
ActiveQuote compare accident and sickness insurance quotes online and let you tailor your policy to suit your budget and needs.
How does accident and sickness insurance work?
Accident and sickness insurance can protect your income if you are unable to work through injury or illness. As the policyholder you can choose how much benefit you want to receive in the event of a successful claim with the maximum benefit amount typically 70% of your gross earnings.
If you suffer an injury or illness that causes you a loss of income you can make a claim on your accident and sickness protection policy which will pay you your benefit directly.
What you spend the proceeds of your policy on is entirely up to you but it can act as a replacement for your lost income to allow you to focus on recovering from your injury.
Why would I need accident and sickness insurance?
No one likes to think that they will become injured or be too ill to work, but 2 million workers currently employed in the UK have had to take six months or more off work1.
If you also consider that you are three times more likely to need long-term time off work due to injury or illness than die1, then accident and sickness insurance can provide a much needed protection.
As of April 2014, the most the government will provide in the way of support for those physically unable to work is a maximum £106.50 a week2. You should consider your financial position and assess whether this would be enough to maintain your current standard of living.
With one in five1 of us likely to be on long-term sick leave during our working lives, accident and sickness insurance is worth serious consideration to protect your finances and lifestyle.
What types of accident and sickness insurance are there?
Accident and sickness insurance can be taken out to provide cover on a short-term or long-term basis. The premise of the product is the same however you will be covered for a longer period of time if you take out a long-term policy.
- Short-term Accident and Sickness - this policy will include a benefit period of a maximum of 12 months and is designed to cover acute injuries and illnesses until you can return to work. Short-term policies are becoming increasingly popular due to their affordability and ease of purchase but the cover is not as comprehensive as a long-term policy.
- Long-term Accident and Sickness - a long-term policy can include a benefit period that can last until your agreed retirement age or until you return to work. For example, if you made a successful claim on your long-term income protection insurance policy when you were 30 years old and had a retirement age of 65 your benefit period could last 35 years. Due to the nature of the product some long-term accident and sickness policies may need to be medically underwritten.
Compare accident and sickness insurance with ActiveQuote
ActiveQuote is a fully authorised insurance broker specialising in income protection policies including accident and sickness insurance. If you wish you can also include unemployment cover in your policy and you can compare both short-term and long-term policies depending on your budget and needs.
1 UNUM 2011
2 GOV.UK 2014