Better Safe than Sorry: The Benefits of an Accident and Sickness Cover

Think about the most valuable thing you currently own. I’m sure, most of you will immediately picture their car, house, or another type of material possession. But in reality, the most valuable thing every one of us owns is the ability to earn. Without a secure income, nobody will be able to pay for luxuries or even the most basic living expenses.

With that being said, have you ever thought about what could happen if you lost your ability to earn? Sure, we tend to comfort ourselves by thinking “it will never happen to me”, but accidents and sickness are a common part of life. With that being said, failing to accept the reality for what it is can have serious consequences on our own lives and the lives of our families. After all, with all the increasing costs of living, being incapable to work even for a single month can spell financial disaster for many of us.

So, it goes without saying, that everyone should consider getting an accident and sickness cover. Basically, this type of insurance offers financial compensation to the insured and his family members in case of a debilitating sickness or injury preventing the insured from working. This type of coverage is also effective in the case of accidental death caused by violent, visible and external means, in which case the insured person’s family members receive the arranged compensation.

When the insured person is unable to earn an income due to sickness and injury, the accident and sickness cover can provide him/her with a monthly benefit of up to 80% of his/her income until they get back to work. While you may think that this type of coverage isn’t necessary considering how the Australian government already provides a sickness allowance for injury, illness and disability – this type of allowance isn’t enough to take care for all your bills and expenses. So, by being insured, you can receive greater financial support that can help you pay for important medical bills and get the best treatment possible to nurse you back to full health.

When structuring your sickness and accident insurance cover, it’s important to take a number of factors into consideration such as the waiting periods, benefit period, ownership structures and scope of cover. Also, note that the amount of compensation you can receive can be influenced by the type of injury or illness you’re dealing with.