Sickness And Accident Insurance Australia

Accidents can happen at any time. Even if you are someone who takes extreme caution, there is always a chance of some accident. It may happen when you are going out to buy groceries or doing some work around the house or while playing with your kids or at any other place.

If you are a contractor, sole trader or a business owner, you cannot afford to remain out of action for long as it will have a direct impact on your personal income. If you remain out of action for a long period of time, it will have a negative effect on your family, your savings as well as your lifestyle. This is where sickness and accident insurance comes in.

What Is Accident and Sickness Insurance?

Simply put, sickness and accident insurance is a way for you to protect your income in case you suffer an injury preventing you from performing your usual work and earning money.

If you’re a self-employed worker, you most likely don’t have much to fall back on in case you get seriously injured. This insurance cover gives you peace of mind as you will get paid by the insurance company until you are able to return to your regular work. In most cases, an insured individual could get a benefit up to around 85% of their existing income in case they are unable to work temporarily due to an accident. This type of insurance policy also allows you to be paid an income from the insurance company in case you become ill and are unable to work due to the illness.

Usually, such insurance policies also have the option of providing a lump sum payment to the beneficiaries in case the insured were to die in an accident. There is also the option of a lump sum payment to be made to the insured person in case they suffer a permanent injury.

It is generally tax-deductible and is not a drain on your finances. It usually does not involve any visits to your doctor and does not require any medicals. The cover is available instantly.

The cover has a number of benefits. It can help in covering the cost of an approved rehabilitation program as well as the cost of hiring an approved nurse among other things. In serious cases, the compensation may also include the cost of alterations to vehicles or properties as well as ongoing care costs.

What’s Covered in This Type of Policy?

As far as the exact details and parameters covered under this policy are concerned, it will depend on the final policy that you choose to buy but generally, the accident and sickness insurance includes:

Compensation covering a major part of your income in case you are unable to work due to sickness or injury.
In some cases, it may also include compensation for transportation to and from your work as well as assistance for a return to work and professional membership fees among other things.
This policy also comes with the option of Death and Disablement which means payment of compensation by the insurance provider due to accidental death or partial disablement or total disablement.

While most of the policies offered by insurance providers cover almost everything, most policies exclude sickness or injury that is due to intentional self-injury, criminal acts, childbirth, pregnancy, pre-existing conditions, participation in professional sports, the influence of drugs or alcohol as well as mental illness among other things. The exact details depend on the exact policy you choose to purchase.

How Can This Coverage Protect Me Financially?

When you buy this policy, you protect your income in case you are unable to work due to an illness or due to an injury.

In most cases, you should be able to get up to 85% of your existing income until you’re able to return to work. If you choose an optional cover, you may also get a lump sum payment in case you suffered partial or total disablement. You have the option of buying this cover for a period of 1 to 2 years.

If you have met with an accident, this insurance policy may also cover your expenses for medical care as well as alterations needed for vehicles and property. You can use the money for your medical bills, everyday living expenses as well as your existing mortgage or any other outstanding debts.

Simply put, buying this insurance cover gives you peace of mind. You will keep making money just like you would while working even if you are injured and are unable to work. It allows you to get back on your feet and to take your time to get better without having any financial worries.

Final Word

Overall, sickness and accident insurance provides financial compensation when you are unable to work. You are not going to get workers compensation in case you’re self-employed and therefore, you need to be prepared for all kinds of situations. It is also important for you to keep in mind that most accidents and injuries occur outside of work which means you put yourself as well as your business at financial risk if you don’t have any insurance cover in place.

We have been helping self-employed individuals like you get the right kind of insurance cover for many years and have offices in most major Australian cities. For an obligation-free, competitive quote, professional insurance advice or more information on how we can help you find the best Sickness and Accident Insurance solution, please contact one of our expert consultants today!