Personal Accident Insurance

It is a good idea to purchase Personal Accident Insurance, in case you were to sustain an injury resulting from an accident which will cover you for up to 75% of your income, should you be unable to work for longer than 3, 14, 30, 60 or 90 days depending on which accident insurance policy you choose.

Benefits of Personal Accident Insurance

A great benefit of personal accident insurance is that the premiums are fully tax deductible. Personal accident insurance will cover you for up to 75% of your income and you have the choice of either two or five years benefit periods or until you reach the age of 65. This is a good policy to have as you are secure in the knowledge that in the event of an accident that should keep you off work for a long period of time, you have a policy that will cover you.

What is covered by personal accident insurance policy

All personal accident insurance policies differ. Normally a life insurance company will cover you for any bodily injury sustained solely and directly by an accident. The injuries need to be external and visible and independent of any other cause. This means that you are generally covered for general accidents that may cause you to suffer an injury which prevents you from working. This injury needs to have occurred within the last 60 days from the time that you ceased work.

Personal accident insurance policy exclusions

Listed below are items that may be excluded from a personal accident insurance policy:

  • Injuries that have been self inflicted or as a result of attempted suicide.
  • Dental injuries are sometimes excluded in policies.
  • All illnesses are excluded.

It is imperative that you know what the personal accident insurance policy covers and does not cover you for. Please read product disclosure statement carefully.

Personal Accident Insurance is NOT Accidental Death Insurance

Personal accident insurance as previously stated provides you with an ongoing income of up to 75% if you are unable to work due to an accident. In most instances these types of policies are a lot cheaper than full sickness and accident insurance policies, as they only cover you for accidents. This policy is also known as income protection insurance.

If you have an accidental death insurance policy then you are covered by a lump sum payment should you suffer an accident which causes your death. This type of policy is similar to a life insurance policy because a lump sum benefit is paid upon death.

It is important not to confuse these two types of personal insurance, as they both are completely different. Personal accident insurance pays you as an individual, whereas accident death insurance pays your beneficiaries or your estate.

You are normally not required to undergo any medical tests to get the cover for personal accident insurance into place, and it can therefore be put in force almost immediately.

Personal Accident Insurance quotes

Give us a call on 1300 793 143 or fill out the form on this page today and receive your free personal accident insurance quotes from all major life insurance companies in Australia.

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Published on May 5-th, 2010 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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Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.