Accident & Sickness Insurance
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What is accident & sickness insurance?
Accident and sickness Insurance is a type of income protection policy that can cover your monthly outgoings, should you be unable to work because of serious illness or an accident.
As fully authorised insurance advisers, Black Lion Insurance has the knowledge, experience and expertise to help find you the right policy for your circumstances. In brief, whether you’re a senior level Director, self-employed, a contractor, a business owner or working full-time, we’re here to help.
What’s covered?
Although pre-existing conditions may not be covered, this important insurance could offer you replacement loss of earnings in cases of heart disease, cancer, stress, and back problems, for example.
Do I really need Accident and Sickness Insurance?
Accident and sickness insurance policies will help you cover the costs of those regular essential payments, such as your mortgage, your bills and groceries. To this end, it generally protects up to 70% of your gross income and be either short or long-term.
All may be well at the moment. However, did you know that according to the Chartered Insurance Institute, just a quarter of the UK’s workers could afford to pay their bills for just three months if they had an accident or were ill?
Truthfully, do you have enough funds in the bank? In similar fashion, if you qualify for sick pay from your employer, payments may only cover a limited period.
Accident and sickness insurance is not the same as private health insurance. Private health insurance only covers the cost of your medical treatment and is paid directly to the private healthcare provider.
What’s the solution? With so many options available, what should you do?
Accident and Sickness Insurance Advice from Black Lion Insurance
With access to a comprehensive selection of the major UK insurance providers, our qualified professionals can research and compare a comprehensive range of policies on your behalf.
We are committed to sharing our expertise with you. Our approach is to provide you with knowledgeable advice rather than selling you something you don’t need.
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What is Own Occupation Cover and why do I need it?
Firstly, here at Black Lion, we suggest that you strongly consider taking out an Own Occupation policy. To explain, you will be able to claim on the policy as long as your illness or injury prevents you from carrying out your own specific job rather than any job. In other words, with this vital incapacity definition in place, your claim is much more watertight.
As can be seen, with this type of policy cover, you’re on the right track.
To be honest, we hope that you never need to make a claim. However, if you do, we can process everything for you and answer any questions you may have.
Can you afford not to?
Unquestionably, having no money coming in will be as stressful as being ill, or suffering an accident. Similarly, if there are people depending on you, the pressure could be immense. Surely, therefore, a robust income protection policy is well worth considering.
We believe it is a crucial insurance product. Particularly for the self-employed, income protection cover can maximize your chances of recovery without the added worry of paying your mortgage and bills. Peace of mind is invaluable.
Policy Comparison
Accident & Sickness vs Income Protection
Answering 'What's the difference between Accident & Sickness Insurance and Income Protection?', this article looks at the key differences, compares example quotes and considers the potential suitability of both policy types for two self-employed professionals with very different occupations and personal requirements.
Do you need accident and sickness insurance?
Accident and sickness insurance would be vital if:
- You are self-employed and would not be able to pay the bills if you were unable to work. Basically, it would ensure that you would be able to pay your bills if you were ill or injured.
- In your household you are the sole income provider. As a result, you would not be able to pay the bills if you were unable to work. As the only source of generating funds, choosing income protection insurance is the best way to protect yourself and your family financially. In this case, we can find the best policy for you. Importantly, this could enable you to pay the bills and monthly outgoings if you suffered an accident or sickness that meant you could not work.
Accident and sickness insurance is important if:
- You’re self-employed, and you don’t have a large amount of savings that you are happy to dip into. In our opinion, an accident and sickness insurance policy could offer you maximum protection.
- You’re the sole income provider and your employer offers sick pay. Obviously, you will want to check what level of sick pay you would get from your employer before making a final decision about income protection insurance. All things considered, few companies offer long term sick pay beyond Statutory Sick Pay, so it is important to have all the information in advance.
- There are two incomes in your household, but you’re not sure if your partner would be able to cover the financial responsibilities if you couldn’t work. For example, if your partner’s salary couldn’t cover the bills, it would be worthwhile considering an income protection insurance policy.
How does an accident and sickness insurance policy help when you need to claim?
You stop working due to an accident or illness, and stop earning an income.
Let us know, and we'll guide you through the claims process with the insurer.
You will start to receive your monthly payout.
The monthly payout will continue for as long as your insurance policy covers.
What are your policy options?
Short-Term or Long-Term Protection?
There are two types of accident and sickness insurance plans.
Short-term plans usually range from 6 months to 2 years. Long-term plans will pay out until you are well enough to go back to work, whether that’s 1 year or 10 years.
Deferred Period
A deferred period, or excess period, refers to the duration of time between stopping working, and when your insurance policy will start to pay out.
Explicitly, this can range from just a couple of days, up to a whole year. Generally, the standard length of time for most long-term insurance policies is 4 weeks.
Indexation
Indexation helps to protect your policy against inflation. Your monthly payments will increase each year, to reflect any increases in costs according to the Retail Prices Index (RPI).
Policy Cease Age
Your insurance policy cease age is how old you will be when the policy will end. Ordinarily, this is the age you will retire at, but it could be older.
Maximum Pay-Out Period
This refers to the longest length of time that you can make a continuous claim on your income protection insurance.
For short-term policies this could be from anything between 6 months to a couple of years. Usually, there are no restrictions with a long-term policy. In general, you will receive payments until you are either able to return to work, or you reach your policy cease age.
What affects the costs of your policy ?
Monthly Payout
The higher your monthly payout amount, the higher your policy premium.
Policy Cease Age
Premiums will be higher with longer running policies.
Deferred Period
The longer the length of time before your policy pays out, the cheaper your premium.
Age
The older you are, the higher your premiums are likely to be.
Medical History
Previous illnesses or injuries may increase policy premiums or be excluded from your cover.
The costs of your insurance depend on various factors.
Essentially, the higher you wish your monthly benefit to be the more your monthly premiums will be. Also, you’ll need to consider the length of the policy, as well as your deferred period.
Of course, we’re not ageist, but your age CAN also play a role. The older you are, the more likely you are (in the eyes of the insurers) to make a claim. It goes without saying that your premiums will reflect this.
Also, it’s important to declare any previous medical conditions or illnesses. Certain disorders may not be covered by your income insurance. Moreover, other conditions may mean you incur a higher premium.
Naturally, you will also be asked about your smoking status. Smokers are deemed higher risk resulting in a higher cost for your insurance.
About Us
Black Lion Insurance is a dedicated team of insurance consultants with years of experience in guiding our clients to a solution that meets their specific needs. We specialise in helping both employed and self employed individuals, as well as business owners on a variety of solutions, which range from income protection, keyman and shareholder protection insurance.
