We all like to think that we are prepared for the future and could cope with the unexpected. But the reality is that many of us are risking our homes if we are seriously injured in an accident or suffer an injury that leaves us unable to work.
While it is good practice to have up to six months of salary saved in a high-interest savings account, the truth is that for most people, that is almost impossible. The majority of people will be living hand-to-mouth. This means that their monthly income is swallowed up by mortgage repayments and other living costs. They may have little left aside for luxuries or savings.
So, how would you cope if something terrible happened and you were left unable to work and therefore had no income to pay your mortgage?
This is where accident protection or personal accident insurance can be highly beneficial.
Accident protection insurance will pay compensation if you suffer a severe injury as a result of an accident. It can provide you with an assurance that your income will be protected if you cannot work. It can even help you with any other bills or costs that may arise due to your accident.
How does accident protection insurance work?
Some accidents can have lasting repercussions that are difficult to cope with. We may all like to think that we are fit and healthy and could quickly recover from an accident. But many scenarios could lead to financial devastation.
If you’re involved in an accident and are seriously hurt, would you still be able to work? If you couldn’t, would you be able to survive on your company’s sick pay policy? These days, most businesses will only offer statutory sick pay. This is capped at £96.35pw payable for up to 28 weeks. Perhaps you’ve been left permanently disabled, and you need to modify your home substantially. Or maybe you’ve been left needing regular physiotherapy appointments. In which case, the costs can add up, and you could be left out of pocket.
Personal accident insurance could give you peace of mind that you would be left financially secure if the worst were to happen. It is often offered as an additional level of cover with many life insurance or car insurance policies. For just a few extra pounds a month, you could have personal accident cover of up to £100,000. This cover could not just pay out for any costs arising from your accident but could function as a form of mortgage protection. So, you can feel safe knowing that whatever happens, you can continue to pay your mortgage repayments.
Who could benefit from accident protection?
Accident protection or personal injury insurance has particular limitations on what it can and cannot cover.
Typically, it offers protection in the following scenarios.
- An accident caused by criminal violence
- An accident in the workplace
- A road traffic accident
- Slips or spillages
- An accident resulting in total or permanent disability
- Loss of limbs (amputation) or loss of use of body parts
It’s important to understand that accident protection will not cover you in certain situations. For example, if your injuries are self-inflicted through recklessness or intoxication. Accident protection or personal injury insurance will not cover you if your injury is caused by sickness or disease.
Accident protection may be suited for those working in certain professions at greater risk of accidents. For example, those working on construction sites, in mines, or on oil rigs may prefer the security of knowing that their mortgage will be protected if they suffer an accident at work and cannot work.
Can you get accident protection insurance if you are self-employed?
If you are self-employed, you may feel that accident protection insurance is critical. With no access to statutory sick pay (or even holiday pay), how could you protect your income if you were unable to work?
In these circumstances, you may wish to consider investing in self-employed income protection insurance. This is a long-term insurance policy that will last until your retirement age. It will protect you against any loss of income should you be affected by an illness or an injury. A self-employed accident and sickness insurance policy will be a safety net for anything that could prevent you from doing your job. It will typically cover up to 65% of your gross income.
Our team of experts can source competitive insurance solutions to meet your needs
At Mortgagemove, we have a team of experienced advisors who can help you find the right accident protection insurance cover for your needs.
We’ll take you through the process step-by-step. We will find the most competitive insurance option that meets your needs and your budget. Then, when you’re happy with your choice, we can complete the application on your behalf. We can give you peace of mind that you and your family will be financially protected if you are injured in an accident.
Beyond accident protection insurance, we can also offer a wide range of insurance safeguards against the unexpected. For example, you may wish to investigate life insurance, critical illness insurance, or even income protection insurance. All of these are designed to offer maximum protection for just a few pounds per month.
Our insurance services are delivered in partnership with Paymentshield, one of the UK’s leading insurance distributors and administrators. Paymentshield is also a 5-star defect rated company.
To find out more about how we work, please get in touch. Or text ADVICE to 82228.