Personal Accident Insurance: What You Need to Know

There's no telling if and when you'll meet an accident. The worst part is that you might find yourself out of work and without income while you are recovering. However, the good thing is that you could at least prepare for any unforeseen incident by taking out insurance. Personal accident insurance is a more specific type of insurance designed to cover your needs when you meet an accident.

How Personal Accident Insurance Works

This type of insurance works by providing you and your family with up to 75% of your income in case you're unable to work because of an injury. Depending on your specific policy, you may receive benefits for up to 52 weeks, or about an entire year. You may also choose to receive your benefits as a lump sum payment or as monthly payouts.

Volunteer Worker?

With personal accident insurance, injuries you sustain during your volunteer work may also be covered by your policy. Because of that, you may also opt to get insurance coverage even you work as a volunteer, especially if there's a great risk of getting injured while performing your duties.

Cover for Your Children

This type of insurance isn't just exclusive to adults, as you may also choose to get coverage for your children. That way, if they get injured at home or at school, you don't have to worry about making out of pocket expenses for their medical needs.

Income Protection Vs. Personal Accident Insurance

There are a number of features that both types of insurance share, such as the level of payouts. However, there are a number of important differences too. For example, income protection insurance only provides monthly payouts, while personal accident insurance gives you the option to receive monthly or lump sum payments. Aside from that, volunteer work isn't covered by income protection insurance. Then personal accident insurance offers automatic renewal of the contract, while the other insurance type doesn't offer the same level of flexibility.

Find the Right Insurance for You

Since both income protection and personal accident insurance offer almost the same level of coverage, it can be quite confusing which one you should choose for yourself or your family. You don't need to worry though as our qualified advisors at Rate Detective are ready to help you. They will assess your needs and then provide you with rate comparisons of Australia's top insurance companies. All these help you rest assured that you'll find a policy that's perfect for your needs. Contact us today for more details!

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Published on July 7-rd, 2013 in Insurance
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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