What is Accident Only Insurance?
Navigating insurance options when you have a complex health history or high-risk job can feel overwhelming, but you don't need to remain unprotected.
The basic premise is simple: Accident Only insurance acts as your 'Plan B,' securing your financial stability if an unexpected accident suddenly wipes out your ability to earn an income.
Accident Only Insurances
The Plan B for when you're not eligible for Plan A.
- Accidents change everything. They can suddenly wipe out your ability to earn an income, endanger your family's stability, and alter your confidence for the future.
If you don't qualify for comprehensive insurance cover due to health or occupation, Accident Only Insurance is the next best option to reduce your risks. It is designed to protect you from the financial effects of accidental death, disability, or loss of income that an accident can create.
Sometimes the next best thing becomes the best thing available.
When Plan A isn't an option for you
Living with a complex health diagnosis or holding down a high-risk occupation and not qualifying for traditional insurance cover is all about living with uncertainty.
- Many people, for various reasons, do not qualify for a full and comprehensive policy to protect themselves and their families.
This specific type of Accident Only cover acts as a 'Plan B' financial cushion, if you're unable to get standard sickand and accident personal insurance.
Who is this relevant for?
This solution is especially relevant for people who are usually declined standard cover, including those with:
- Complex medical history: Conditions like leukemia or genetic kidney disease.
- Recent medical procedures: Where long-term outcomes aren't known yet (eg: recent gastric banding, organ transplants, or recent mental health support).
- Difficult to manage conditions: Such as Dysplastic Nevus Syndrome, where the risk of melanoma makes standard cover commercially uninsurable.
- High-risk occupations: Such as Crane Drivers, Tree Loppers, or frontline Emergency Services Workers.
It Covers you where most Accidents happen (24/7)
What you may not know is that most accidents usually take place in and around the home while people are going about their everyday tasks. A weekend of DIY, cleaning roof gutters on a shaky ladder, or even a slip while taking out the wheelie bins, can end in an accident.
While you may recover physically, this insurance ensures you can recover financially by helping pay the bills while you rehabilitate.
The 3 Types of Accident Only Cover
Just because you cannot get comprehensive cover doesn't mean you can't have protection. These are the three main types of accident-only covers available:
1. Accident Income Protection (AIP)
This pays up to 75% of your income per month (and can reimburse your employer’s super contributions) if you are working and become totally or partially disabled as a result of an accident.
It provides an ongoing monthly payment so you can continue to pay the mortgage and meet family living expenses while you recover.
2. Accident Total & Permanent Disability (ATPD)
This pays a lump sum benefit if you are totally and permanently disabled as a result of an accident and unlikely to ever work again.
There are different definitions of cover available, including 'any occupation' or the higher grade 'own occupation' category.
3. Accidental Death (AD)
This pays a lump sum of money to your beneficiaries if you pass away from an unexpected and unintentional accident.
Case study – Real Life Application: Meeting Ramesh
A Case Study in being prepared.
The Situation: Ramesh is an energetic software coder living with a history of Polycystic Kidney Disease and is a kidney transplant recipient. Because of his medical history, he was unable to qualify for comprehensive Income Protection or Disability Insurance.
The Solution: He decided to take out the 'next best option' - Accident Only Income Protection and Accident Only TPD.
The Event: During a weekend cycle with his bike club, a car collided with the group. Ramesh was knocked into roadside gravel, breaking both wrists and three fingers.
The Outcome: Immediate Support: His Accident Only Income Protection pays him a monthly income (up to 70% of earnings) while he undergoes rehabilitation, meaning financial security is not a worry.
Long-term Safety Net: If he does not recover full use of his hands and cannot return to work, his Accident Only TPD cover will pay him a $2,000,000 lump sum.
Frequently Asked Questions
What counts as an 'Accident'?
It is vital to understand that 'accident means accident'. If a pre-existing condition caused the event, it is usually not covered.
- Example: If you have pre-existing glaucoma and slip because you couldn't see the stairs, this may not be considered an accident.
- Example: If a pre-existing knee injury causes your leg to give way and you fall, this may not be considered an accident.
Can I pay for this through Superannuation?
Yes. All of these Accident Only Insurance solutions can be paid from a superannuation fund if you choose. Accidental Income Protection can even cover your employer's super contributions while you are on claim.
Why shouldn't I just buy this online?
These policies are not suitable for a 'DIY' approach or simplified online comparison services. Because they are designed for people with specific risks or medical exclusions, you need professional advice to ensure the policy definitions match your specific needs.
How we can help
We help people living with complex health histories and recent health conditions get the cover they need. We understand that living with a complex diagnosis or a high-risk job is about managing uncertainty, and we are here to help you manage that.
