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What is accident protection insurance? And is it worth it?

What Is Accident Protection Insurance? And Is It Worth It?

Accident protection insurance is designed to provide financial support in the event of an accident which leads to serious injury or death. There are countless insurance companies offering different packages with varying inclusions and exclusions. So, how do you make sense of it all?

Before you take out a policy, it’s important to first understand whether you need it, and secondly, work out which insurance package is likely to be the most useful and cost-effective.

In this guide, we explain in more detail what accident protection insurance is, some of the typical inclusions and exclusions you can expect, and provide helpful prompts which will help you decide whether it’s right for you.

What is accident protection insurance?

Accident protection insurance is known by a variety of names, including: personal injury insurance, personal accident cover and accidental injury insurance – among other variations.

The idea behind it is simple: in the event of a serious accident, which impairs your ability to work – or, in the very worst case scenario, takes your life – you and your family can be compensated for the loss of earnings.

Accident protection is often included in car insurance, life insurance and sometimes even travel insurance policies. But they can also be bought as standalone packages. It’s commonly made available only to those between the ages of 18 and 69.

Different levels of cover are given to different types of injury and depend on the policy chosen. While a broken leg which leaves you unable to work might lead to a £5,000 pay out, to actually lose a limb may pay out £10,000. Meanwhile, an accident leading to death may provide £100,000 cover.

The insurance company will provide a rundown of different types of injury and the amount paid out for each one. But the logic behind the payouts is pretty simple: longer-term health problems will require more compensation, while shorter-term issues will require less.

Remember: most personal accident insurance policies specify that your injury must be solely and directly caused by the accident.

What’s included in personal accident cover?

As with any insurance policy it’s important to be aware of the inclusions and exclusions of a policy. This way you can make an informed choice about whether it’s right for you (which we cover in more detail in the following section).

One of the most important things to mention about accident protection insurance is this: it’s non-underwritten. This means that people who’ve been declined life insurance or other types of health insurance, can still gain access to a policy and valuable cover.

These are some of the usual situations covered in an insurance policy:

  • Accident or injury at work
  • Injury caused by an act of violence committed against you
  • Injuries resulting from slips, trips and falls
  • Broken arms, legs and fractures to other areas of the body
  • Loss of body parts: legs, arms, feet etc.
  • Road traffic accidents
  • Disability caused by an accident

Situations typically excluded in a policy document are:

  • Injury caused by disease, sickness or any other naturally occurring medical condition.
  • Injury or death caused by extreme sports or other inherently dangerous pursuits (for example, mountain climbing or BMX racing)
  • Injury or death partially caused by other factors which may be your own fault, such as a car accident caused by drink driving.

Is accident protection insurance worth it?

As usual with insurance, there’s no simple yes or no answer – it is about what is right for you and your circumstances. The need for accident protection insurance has often been a point of passionate debate. Some advocating based on their personal experiences, while others suggesting it’s a “long shot” insurance policy which is unlikely to be needed.

The truth is: it depends on your circumstances. The type of work you do, the activities you take part in, and the kind of insurance policy you can negotiate will largely dictate whether it’s worthwhile or not.

When we speak to individual’s looking for accident protection insurance, we ask them a few questions to work out their probable needs:

  • What is your job? What kind of risks are involved that might need to be covered?
  • Which benefits / insurance cover do you already have in place – both as an individual and family?
  • Do you take part in sports? If you do, what kind of injuries are typical in these sports?
  • What other insurance policies do you have? Do they provide any accident cover?
  • Do you partake in any other potentially dangerous activities, such as cycling or DIY?

Based on this information, we can work out whether accident protection insurance will be worthwhile and what kind of policies will need to be included. It’s all about gauging the level of risk that exists in your daily life and deciding on the best accident insurance which covers those risks.

For example, if you’re a builder, have a side-line in DIY and also play football at the weekend – your accident risk profile is pretty high. In such a scenario, accident protection insurance is worth serious consideration.

Rich Horner, Head of Individual Protection at MetLife commented “if the last year has shown us anything, it’s that the unexpected can happen. Too frequently Advisers hear the phrase ‘it won’t happen to me’. Unfortunately, life deals unexpected turns and a bad situation can be made so much worse when the family are financially impacted too.

Accident and health protection plays a key role in the protection portfolio. It covers a range of injuries from broken bones to those that could have a significant impact on their lifestyle. It can be tailored to meet the needs of individuals and families by providing financial support in the short term to protect your clients’ day-to-day. Cover is simple, effective and affordable and is a great addition to sit alongside existing long-term protection such as Life and Critical Illness cover.”

Accidents happen, but will they?

Accident protection insurance is particularly useful for those who have certain latent risks in their personal and professional lives. Of course, nobody is risk-free – even the most sedate office job isn’t immune to the danger of slips, trips and falls – but some workplaces have riskier profiles than others.

If, when you consider your current lifestyle and workplace, you feel that accidents might happen; then it might be worth protecting yourself with a carefully considered accident protection policy.

If you’d like one-to-one guidance on finding the right accident protection cover, then contact us today for a free chat. We specialise in making insurance simple and alleviating the burden of finding the right insurance cover.

Charlie Cousins

Founder and Director of Hooray Health & Protection, Charlie Cousins has enjoyed a career in the insurance and financial services industry spanning over the last ten years.

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