Independent advice on private healthcare
Types of policy
- What benefits should I expect?
- Which policy is right for me?
- How much does it cost?
- How do I get a quote?
- Life or Personal Accident?
- The need for personal accident insurance
- When should plan benefits start?
- Tax on payments
- Typical exclusions and limitations
- What is Personal Accident Insurance?
- Is terrorism covered?
Types of policy
The insurance industry can confuse customers and itself with the titles it gives to types of policy within the wider definition of personal accident Insurance.
There is a thin dividing line between personal accident and income protection policies.
- Simple personal accident policies only pay a cash sum following an accident where you are injured
- Simple income protection policies pay when you are off work following an accident
- Where they merge is when an income protection policy also includes illness, and a personal accident policy includes sickness and/ or pays monthly benefits rather than a cash sum.
- We regard policies which cover an accident and sickness/ illness by paying a cash sum as Personal Accident
- We regard policies which cover accident and illness by paying a monthly benefit as Income Protection.
But it is not always clear-cut so we suggest you read both sections.
Policies to protect mortgages, loans or credit card debts are frequently called Accident Sickness Unemployment (ASU) policies; these are not Personal Accident plans, but Income Protection ones.
Insurers themselves often confuse you by using vague product names like " Protection " which can include income protection, critical illness, life, personal accident and other products. - or a flashy name which gives no indication of what it covers.
There are three main ways to partially or wholly protect you against the costs of long term care.
- On some products, you only get money if you qualify as needing care.
- On some products, you get money anyway, but there is some help in arranging care if needed.
- On investment and Equity Release products, you choose whether or not to use the proceeds on care.
The products do not always fit neatly into one or other category. Increasingly, we see products, which offer a range of options now, and in the future.
Personal accident plans fall into the following main categories. Select one of the product types for an explanation of how these plans work and what they offer.