What is the difference between Personal Accident Insurance and Income Protection?
There are two types of insurance, Personal Accident and Income Protection and you can purchase either in isolation or both together. Personal Accident pays out a lump sum in the event of certain defined accidents and injuries. Income Protection pays out a monthly benefit for a period of time if you are unable to work due to an accident or sickness. You need to be aged between 18 and 65 to purchase insurance and insurance ends when you attain the age of 67.
More specifically these insurances provide the following protection:
Personal Accident Insurance
The Policy provides a lump sum payment at the chosen limit of indemnity (up to £50,000) in the event of an accident which causes bodily injury, including:
- Permanent total disablement
- Permanent brain damage
- Loss of speech
- Loss of hearing
- Use of a shoulder, elbow, thumb, finger or toe
- Loss of sight
- Loss of limbs
- Accidental death
As with any insurance Policy some things are not covered, including the following:
- A fracture that has occurred in the first 15 days of the Policy
- When you are riding a motorcycle, moped or scooter (as driver or passenger)
- Rock climbing or mountaineering
- Suicide or self-inflicted injuries
- Where you are under the influence of alcohol or drugs
- Illegal acts
- Flying, accept as a fair paying passenger
- Competing in a race other than on foot or whilst swimming
- Where the accident occurs in a country that you have been advised not to travel to or avoid by the Foreign and Commonwealth Office.
We recommend that you read the Policy Document in full before deciding whether to purchase cover.