Human life can best be characterised by various elements of uncertainty. Insecurity means that accidents may happen at any time, and with anyone. The bad thing is that serious accidents have a very negative impact not only on the person who suffered it, but also on his/her family. In order to prevent at least the financial concerns in such circumstances, insurance companies designed a special product called Accident Plans to provide some kind of financial security for those who suffered an accident as well as for their families. These policies ensure that if an accident takes place, a benefit is given to those insured individuals who are seriously injured or if they die, such benefit is given to their families.
What kinds of injuries are covered by this policy? Benefits are paid in the event of the insured’s accidental death, but also if the person suffers the following injuries due to an accident:
- Quadri-, para- or hemiplegia
- Total/ permanent loss of use of one’s limbs
- Deafness
- Blindness
So in one word, Accident cover is used to protect the insured and his/her family from the negative financial consequences of the insured person’s injuries resulting from a serious accident. It gives the financially reassuring feeling that in case an accident happens, and the person becomes permanently disabled to work, the insurance company will provide a lump sum as insurance benefit. This means people get financial help when they need it most. Moreover, insured individuals also get a certain amount of money for each day of hospitalisation. Also an immediate lump sum is given in case of disability, the amount being based on the nature and seriousness of the injury.
An important advantage of accident insurance policies is that they address the majority of the key life -stages, from the young through new parents until the older generation. Moreover, Accident Cover gives applicants differentiation by providing them with many flexibility features in order to meet each applicant’s unique needs. The policy thus can be personalised, so one may get a specific coverage against professional hazards for instance. In addition to this, people may add the Children's Insurance option to their accident plans. This will provide an additional benefit to pay medical bills, tuition fees or similar expenses in case one’s child contracts a serious illness.
Is there anything important to know about eligibility? In order to be eligible, people must be at least 18 and under 70, and they should be permanent residents of England, Scotland, Wales, or Northern Ireland. Applicants must be able to demonstrate they have at least 40 weeks residency in any year in the previously enumerated places. When insured people reach 65, their cover ceases to provide protection against permanent total disability and coverage ceases entirely at age 75.
What is the application procedure? The easiest way to apply is either online or over the phone. The whole application procedure will take only a few minutes: people have to answer a few questions, and there are neither blood tests, nor any medical tests. Cover may start as soon as the next working day after the application. Generally people are given a period of 30 days to review their policies and decide whether it is right for them. If they change their minds during this trial-period, people may cancel their plans for free.
One of the main benefits this kind of policy offers is the global coverage. Insured individuals are covered anywhere in the world for the majority of the possible accidents. Nevertheless, it is of primary importance for people to get the necessary information regarding what exactly is covered and what is not. So people are advised to read out the terms and conditions of the policy and ask the company about those elements or features that are not clear.
It is unfortunately true that we cannot prevent accidents, but at least we can protect ourselves and our loved ones from the negative financial consequences of such accidents. A protective insurance we may conclude typically provide:
- an extensive accident cover from as low an amount as £4-5 a month
- easy and permissive eligibility criteria (almost anybody is eligible)
- a possibility to increase the coverage-level up to £150,000
policy guaranteed without medical examinations
- Tax-free cash payments
- the security of fixed insurance premiums that do not change as the insured gets older
- options to get additional protection for the insured’s entire family (for instance, people may cover their partners as well)
- worldwide, 24/7 insurance-protection
- benefits in addition to other policies the insured has
- coverage until the insured becomes 75
- 30 day period of money-back guarantee
Talking about the cover in details, people should know that the following are involved: permanent total disability (a coverage of £100,000), loss of sight either in one eye (£50,000), or in both eyes, loss of use of either a limb (£50,000), or of two limbs, loss of hearing (£20,000 - £100,000), loss of use of a hip, knee, ankle, or wrist (£10,000 for each), shoulder (£12,500), thumb (£7,500), any finger or toe (£5,000), hospitalisation up to a maximum of 180 days (£50 per day), and accidental death (£10,000). The amounts given in brackets are approximate sums of money given if the insured suffers the injuries in question. In order to know the exact amounts provided people should get up-to-date information from their insurance providers.
As with any insurance policy, people should keep in mind that there are some excluding factors or limitations. With an Accident Cover there are no benefits for accidents that are direct or indirect consequences of the insured person’s suicide or attempted suicide. Similarly, alcohol or drug use is also an excluding factor. There is no benefit given if any of the previously mentioned injuries happen 12 or more months after the accident. Nevertheless, people who conclude this type of policy are recommended to read out the full details of exclusions that are valid for the policy.
A final advice for applicants is to review their needs and financial situation from time to time. Regularly made analyses should involve people’s coverage-level and premiums. Anybody may change his/her policy: it is possible to decrease the coverage-level, but also to increase it by attaching additional cover to it for extra costs. In order to make changes, people should consult with the insurance providing company. In any case it is of primary importance to understand what kind of coverage is offered and check whether it is right for one’s particular circumstances. Only this ensures that one purchases a suitable policy.
