Financial planners recommend income protection insurance, sometimes called disability insurance, as a key element in your overall asset protection program. Your earning power is probably the most important resource your family has that can be protected simply and inexpensively.

What type of insurance is personal accident?

What is personal accident cover? Personal accident insurance, also known as personal injury insurance, is designed to pay out compensation if you suffer from a serious injury or death as the result of an accident. It can protect you and your family against loss of income, and help them with bills and other expenses.

Is personal accident a benefit policy?

Unlike a health policy, with a personal accident policy, you are covered against any accidental death and your nominee gets 100% of the chosen sum assured. In case of Permanent Total Disablement also, you get 100% of sum insured payable. Post accident costs for ambulance incurred are also reimbursed as per the policy.

What’s the difference between personal injury insurance and income protection insurance?

However, personal accident insurance (sometimes referred to as personal injury insurance) only covers you for accidental injuries, whereas income protection can pay you if you’re sick or injured. What is the difference between personal accident insurance and income protection insurance?

Is the sickness and accident policy the same as income protection?

One of the biggest myths about trade insurance is the belief that sickness and accident insurance is the same as income protection insurance. Whilst both policies have many similar attributes, a sickness and accident policy is generally considered to be inferior to a proper income protection policy.

What’s the difference between accidental and Personal Accident Insurance?

On the other hand, accidental insurance or personal accident insurance provides protection in case of death and injuries resulting from an accident. This policy guards an individual only in the event of an accident. The incident may cause impairment, whether short-term or lifelong wounds or even demise.

What can be excluded from personal accident insurance?

If you have sickness and illness cover with your personal accident insurance policy, you may find that certain illnesses such as HIV, AIDS, and mental illnesses are typically excluded from cover.