What is Personal Accident and Sickness Insurance?

The insurance industry is full of jargon, so the following are some commonly used terms to describe the types of personal accident and sickness insurance products that are available.

Personal Accident and Sickness Insurance (PAS) is a way of mitigating or reducing the financial effects of an adverse life event relating to your health.

Adverse life events covered by personal accident and sickness and insurance are typically short term (annual) contracts to provide you with an income in the event you are unable to earn due to accident and sickness, or illness and disability. They can be likened to short term Income Protection Insurance policies.

Death is a terminal life event covered by Life Assurance policies such as Term Assurance and Whole of Life policies.

Depending on the type of personal accident and sickness insurance policy taken out by you or on your behalf, PAS policies are short term contracts lasting usually one year where payments will be made monthly to the beneficiaries of the policy in the event of a claim being made.

 

What are the types of Personal Accident and Sickness Insurance?

The following are the types of cover available with personal accident and sickness insurance:-

  • Individual Personal Accident and Sickness is a policy taken out by you personally (eg self employed) which pays out a monthly benefit in event of accident and sickness (illness and disability) preventing you from earning. The monthly benefit is designed to pay you an income.
  • Group Personal Accident and Sickness is a policy taken out on your behalf (eg. employer, sports or social club) which pays out a monthly benefit in the event of accident or sickness preventing you from earning. The monthly benefit is designed to pay you an income.

 

Why should I take out Personal Accident and Sickness Insurance?

There are a number of factors about an individual’s personal circumstances that will determine which of the types of personal accident and sickness insurance that may be applicable are based on their suitability and affordability.

Generally PAS insurance is designed to protect you from one off events that are not usually covered by other types of insurances (eg Income Protection Insurance) or where to obtain redress for work related accident or illness you may have to resort to legal action.

 

How should I take out Personal Accident and Sickness Insurance?

The first and most important step after you have decided you may have a need for personal accident and sickness insurance cover is to have a discussion with us to provide you with independent financial advice.

Once we have agreed what the most suitable type of PAS insurance cover is for your particular circumstances we make an application on your behalf to take out a protection policy based on how much you can afford and the amount of cover required, with the most applicable protection benefits to match your needs.

 

How do I pay for Personal Accident and Sickness Insurance?

Once the amount and type of benefit you require has been determined your monthly payment or premium for protection under the policy or cover will be offered to you by the insurer’s underwriter after they have reviewed a completed personal questionnaire relating to your occupation and lifestyle including in some cases a medical report.

The monthly premiums payable and the contract will be reviewed every year by the insurance provider i.e. the insurance company underwriting the policy.

 

Want to know more?

Talk to one of our qualified financial advisers on 01553 777600 or e-mail us at enquiries@ringassociates.co.uk