What is Personal Accident Insurance?

Personal accident insurance pays out an income if you're unable to work because of illness or injury. Personal accident insurance aims to put you back to the position you were in before you were unable to work. It pays a regular tax- free monthly income.

 

It does not allow you to make a profit out of your misfortune. So the maximum amount of income you can replace through insurance is broadly the after-tax earnings you have lost less an adjustment for state benefits you can claim. This is usually translated into a maximum of 50% to 65% of your before-tax earnings.

 

As with all insurance, the trick to buying the right type is to consider exactly what it is that you need it to do for you. You need to have a very close look at the small print of any policy to make sure it will pay out when you want it to.

 

Personal Accident cover is often included in motor, travel, sports, home and business covers. It is often included or an option on Private Medical Insurances

 

The smallish premiums mean it tends to be expensive to sell and administer, so few insurers now offer covers.

You can "Get a Quote" for personal accident insurance by completing our enquiry form. Your enquiry will be submitted to up to three providers of personal accident insurance in the UK.