Everything You Need to Know About Personal Accident and Illness Insurance

If you’re lucky, you’re probably rarely using your medical insurance. But let’s just say, you fall during hanging your holiday lights or slip while riding your bike. Even if it’s a single event, it can cost you more than you can imagine- from riding to the ER and staying in the hospital to the follow-up care and rehab once you get discharged. When it comes to more serious illnesses, these costs can grow up double.

And just like many modern businesses go for cyber protection insurance to protect from hacking, you can also “soothe the pain” and financially cover yourself and your family from accidents and serious illnesses. Let’s learn something more about these types of insurance.

What is Accident and Sickness Insurance? 

Personal accident and illness insurance is the type of insurance that covers up to 80% of your income when not being able to work due to accidents and serious illnesses. Such insurance is usually designed as a supplemental plan to your regular health insurance plan. However, it does not work as a replacement, as it covers a broader scope of conditions than the typical health insurance plan.

Many insurance providers will let you choose your scope of cover, benefit period, ownership structures and other key features you want to cover. And the best thing about accident and illness insurance is that you can spend your money however you want- for covering your medical expenses to childcare, groceries or any other daily living expenses.

It’s Different from Medical Insurance 

Your typical medical insurance will cover just a small portion of the expenses associated with accidents and treating serious illnesses. In fact, treating such conditions often brings unexpected costs such as transportation, childcare, grocery delivery, expensive treatments and rehab etc…  

On the other hand, accident and critical illness insurance will cover you completely, so you can dedicate yourself to your recovery instead of worrying about how to cover it financially. 

You’re Not Invincible

The greatest mistake many people do is thinking that you can never get in an accident or find out you’re suffering from a certain condition. The truth is that none of us is as invincible as we think, and events such as car crashes, injuries while doing sports activities and even slipping on ice in your driveway is something that can happen to everyone. So instead of taking risks and leaving things to chance, it’s best to get a personal accident and illness insurance to cover the expenses of events that can occur when you least expect them. 

The best thing about accident and illness insurance is that you can choose a plan that covers your entire family. This is especially important if you have children, as even if you think they can never get hurt, the truth is a little bit different. According to research, 38.4% of hospitalized kids in Australia are injured during falls from playground equipment, while 19% are from sports activities. 41.9% of them have fractures as the most common type of injury. Hence, instead of thinking that your children are also invincible, it’s best to plan and cover everything with a proper insurance plan.

A Wide Range of Conditions are Covered

We already mentioned that the usual medical insurance covers the costs from some of the conditions that are most likely to occur. However, conditions such as heart attacks, strokes, coronary bypasses, cancer, kidney failure and even COVID-19 imply extensive medical care, treatments and even specialized props and equipment, which are not included in the traditional health insurance plan.

Paying these expenses out-of-pocket is the last thing you want to worry about when treating and recovering from such serious conditions, and an accident and critical illness cover insurance will pay for these costs. On the other hand, you can use your insurance money for several non-medical costs related to your condition, such as transportation, food and grocery delivery, child care- up to your needs.

However, have in mind that the range of covered conditions can vary among different insurance plans and policies. For instance, some plans might not include some types of cancer and chronic illnesses. This typically depends on the amount and extent of coverage you pay for, as well as on your age, sex and family medical history. On the other hand, some plans don’t cover the costs if the disease comes back or you suffer from a second heart attack or stroke. So, it’s always best to read the policy carefully and choose a plan that covers you completely.

Preexisting Conditions and Change Jobs Don’t Matter

As long as you’re actively employed, you shouldn’t worry about anything when covered with personal accident and sickness insurance. In other words, these types of insurance will cover the financial expenses regardless of the situation, and you don’t even have to take any questionnaires or biometric exams to prove it. This can be very useful for people suffering from prior medical conditions that can put them at risk for falls or any other type of accident.

On the other hand, many portable personal accident and sickness insurance plans allow you to keep the plan even if you change your job. However, keep in mind that you should be eligible and meet certain criteria of your employer to get a portable insurance plan. 

Extra Cash While Being Out of Work

Depending on the type of job you do, some conditions may imply fewer working hours for physical therapies or specific follow-up care. On the other hand, some types of accidents and illnesses may put you completely out of work due to broken bones and your disability to walk or drive for a certain period.

However, you probably know that working fewer hours or not working at all can make money tight, especially if you need special care and expensive treatments to recover. This is where accident and sickness insurance can come in handy, as it’ll cover all those extra costs you may not have planed and absorb the financial impact while you’re not physically able to earn a living. 

The Lump Sum Goes Directly to You

Last, but not least, your accident and illness insurance money comes in a check that is directly made out to you, not your healthcare provider. And the best thing is that you get your insurance in a lump sum at once, instead of getting a series of smaller payments that can’t cover some bigger costs when you need. This way, you’re completely in charge of your insurance money and you can use them for whatever you need while being on a recovery- from medical payments to household expenses or the personal needs of your family. 

Now that you know the basic aspects of accident and sickness insurance policies, it’s time to throw yourself to exploring the different plans and choose something appropriate for yourself and the entire family.