Accident And Sickness Insurance

Compare quotes for accident and sickness cover from a variety of trusted insurers here with Savvy.   

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, updated on July 17th, 2023       

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If you’re a self-employed tradie, sole trader or professional who relies on their income to pay the bills, accident and sickness insurance can provide you with peace of mind that your income stream won’t dry up completely if you suffer from a covered illness or injury and are unable to work for an extended period. 

You can compare quotes for accident and sickness insurance right here with Savvy today. Just answer a few questions about the insurance you require and you’ll have a range of quotes to compare from some of Australia’s leading insurers instantly. Get started with Savvy today to consider a range of offers all in one place. 

What is accident and sickness insurance?

Accident and sickness insurance is a type of business insurance which is designed to temporarily cover you if you suffer an accident or illness which prevents you from earning a living (and qualifies for coverage under your policy’s conditions). It can provide you with a weekly or monthly replacement income for a set period to allow you to continue to pay your bills as you recover from your setback. This cover can be worth up to 85% of your income, though the amount you receive will be subject to your insurer’s terms and conditions and further qualification criteria. 

In addition, some insurers will allow you to add extra cover for temporary or permanent disablement and death, which can provide a lump sum to you or your beneficiaries in the event of an unfortunate covered event occurring. The amount you or your beneficiaries will be paid out is pre-determined when you purchase the insurance, so you can generally choose the level of coverage that feels right for your personal circumstances. For example, some insurers may enable you to choose a death benefit ranging from $50,000 to over $2 million which could be paid to your beneficiaries in the unfortunate event of your death should it be covered by your insurance.  

It’s important to compare a variety of policies if you’re considering this type of insurance, which you can do right here through Savvy today.

What does accident and sickness insurance cover?

Accident and sickness insurance provides coverage for unexpected events that result in an injury or illness, preventing you from working and earning an income. Coverage will vary depending on the specific policy and insurance provider you choose. Here are some common areas that accident and sickness insurance typically covers:

  • Income replacement: If you are unable to work due to an accident or sickness, the insurance policy may provide a portion of your lost income during the disability period.
  • Medical expenses: Accident and sickness insurance may cover medical costs associated with your injury or illness, including hospitalisation, doctor visits, medications, and treatments.
  • Rehabilitation: Coverage may extend to rehabilitation services, such as physical therapy or occupational therapy, to aid in your recovery and return to work.
  • Total disability: If your injury or illness leaves you permanently unable to work, some policies may provide benefits for total disability, offering long-term financial support.
  • Partial Disability: In cases where you can work but experience a reduction in income due to your condition, accident and sickness insurance may provide benefits to compensate for the loss.
  • Accidental death: Some policies include coverage for accidental death or permanent disabilities resulting from accidents.

Levels of cover available: 

There are several different levels of cover available, including: 

  1. Accidental injury only 
  2. Sickness only 
  3. Accidental injury and sickness combined 
  4. Death and disability cover

You can choose the length of time you have to wait for your coverage to kick in after you’ve suffered the injury or been diagnosed with your illness. The waiting period can be as little as seven days, right up to 28 days. You can also choose how long your insurance will pay you a replacement salary, ranging from 12 months up to 24 or sometimes more, depending on the exact policy you decide to buy.  

Some insurers may be able to offer accident and illness policies available for up to five years, although these are rarer and tend to be more expensive than policies offering cover up to a maximum of 24 months. Naturally, the shorter the waiting period and the longer the benefit period, the higher the cost your insurance premiums are likely to be. How long your benefit period lasts will also be at the discretion of your insurer.

How does accident and sickness insurance work?

Accident and sickness insurance works by providing financial protection in case you are unable to work due to an accident or illness. Here's how it typically works:

  1. Purchase the insurance: You first need to purchase an accident and sickness insurance policy from an insurance provider. You can choose the coverage amount and duration based on your needs.
  2. Pay the premiums: You will be required to pay regular premiums, either monthly or annually, to maintain the insurance coverage. The premium amount is determined by factors such as your age, occupation, health condition, and the coverage options you select.
  3. If you experience an accident or sickness: If you have an accident or become sick and are unable to work, you need to meet the policy's specific conditions and waiting periods for a claim to be eligible.
  4. File a claim: Contact your insurance provider and submit a claim form along with any supporting documentation required, such as medical reports or proof of loss of income. The insurance company will assess your claim based on the policy terms and conditions.
  5. Receive your benefits: If your claim is approved, you will receive financial benefits from the insurance company. These benefits are typically paid as a percentage of your pre-illness or pre-accident income. They are intended to help cover your ongoing expenses while you are unable to work.
  6. Return to work or ongoing support: Once you recover and can work again, or if you have a permanent disability, you may cease receiving benefits. However, if you have a long-term disability, the insurance may continue providing financial support for the specified duration or until you reach the maximum benefit payout.

It's important to review and understand the terms and conditions of your accident and sickness insurance policy to know exactly how it works and what is covered.

How do I compare accident and sickness insurance policies?

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Frequently asked questions about accident and sickness insurance

Can I get accident and sickness insurance if I'm self-employed?

Yes, self-employed individuals can typically get accident and sickness insurance. It's an important form of protection for those who rely on their income to support themselves. You should choose a policy that suits your individual needs and provides coverage in case you are unable to work due to an accident or illness.

What is the waiting period for accident and sickness insurance?

The waiting period for accident and sickness insurance varies depending on the policy. It is the specified period of time you must wait after purchasing the insurance before you can make a claim. Waiting periods commonly range from 14 to 30 days, during which no benefits are payable. Make sure to review the policy details to understand the waiting period specific to your coverage.

Will accident and sickness insurance cover pre-existing conditions?

Generally, accident and sickness insurance does not cover pre-existing conditions. These are medical conditions that you already had before obtaining the insurance policy. However, it's essential to check the policy terms and conditions, as some insurers may offer coverage for certain pre-existing conditions after a waiting period or with an additional premium.

How long does accident and sickness insurance coverage last?

The duration of accident and sickness insurance coverage depends on the policy you choose. It can range from a few months to several years. Short-term policies often provide coverage for a specific period, such as 6 or 12 months, while long-term policies can offer coverage until a specific age, such as 65 or 70. Consider your needs and preferences when selecting the duration of coverage.

Are there any exclusions or limitations with accident and sickness insurance?

Yes, accident and sickness insurance policies may have exclusions and limitations. Common exclusions include self-inflicted injuries, illegal activities, and certain high-risk occupations. Other limitations may include waiting periods, maximum benefit amounts, and specific conditions that must be met for a claim to be eligible. It's important to read the policy carefully to understand the specific exclusions and limitations that apply.

Can I claim for accidents that occur outside of work?

Yes, accident and sickness insurance typically covers accidents that occur both inside and outside of work. It provides protection for accidents that may happen in various aspects of your life, not just during work-related activities. Whether you experience an accident at home, during leisure activities, or while traveling, you may be eligible to make a claim, as long as it falls within the coverage terms of your policy.

 

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