Your ability to work is essential to your financial situation and, often, critical to your well-being. So, if that ability is taken away from you, it’s a big deal.
If you lose your income, you might find yourself struggling to pay for food, other essentials and even your rent or mortgage. This is a concerning thought, but it’s even more worrisome if you have children.
Unfortunately, accidents can happen at any time, meaning even if you’re in excellent health now, that doesn’t mean you will be next month.
It can certainly be scary to consider the uncertainty surrounding the future, particularly from a health perspective, but there are some things you can consider that might help allay your fears.
Accident only income protection insurance is a policy specifically designed to protect you financially should you find yourself unemployed or unable to work due to an accident.
And, while this can’t prevent anything from happening, it can help make difficult situations that little bit less stressful.
In this article, we’ll delve into everything there is to know about accident only income protection insurance, including:
- What is accident only income protection insurance?
- What’s covered?
- What isn’t covered?
- How much does accident only income protection insurance cost?
- Is accident only income protection insurance worth it?
- Where can I find accident only income protection insurance?
What is accident only income protection insurance?
Accident only income protection insurance will cover you financially if you’re medically certified as unable to carry out the core duties of your job due to an accident.
This means that if something should happen to you unexpectedly, you won’t have the added financial worry to make the situation worse.
To be covered by this type of insurance, you must receive medical confirmation that you are unable to work due to your accident.
What‘s covered?
What’s covered by an accident only income protection insurance policy will depend on the provider you choose as policies can differ slightly.
However, most policies will cover you for:
- Up to 70% of your earnings
- Accidental death protection if death occurs within 30 days of the accident.
- Accidents caused by hazardous pursuits, as long as they are listed in your policy document
Some policies might also cover back-to-work benefits if your salary is reduced upon returning to work. This means that you’ll receive some financial support even once you return to your job.
See also: What are the benefits of home emergency cover?
What isn’t covered?
As with most policies, there are some exclusions and limitations to this type of insurance. However, the exact exclusions will vary.
To give you an idea of what exclusions you might discover, many insurers won’t cover:
- Claims made where the primary reason you cannot work is due to a pre-existing condition made worse by an accident
- Self-inflicted injuries
- Injuries incurred while taking part in an activity you were advised against due to medical reasons
- Accidents caused by your intake of drugs or alcohol
- Accidents cause by criminal activity
Many policies will also place limitations on the number of hours you must work per week (prior to your accident) and your age.
How much does accident only income protection insurance cost?
How much a policy costs will depend on a variety of factors, including your personal details, the provider you choose and the amount you wish to be covered for.
To give you an idea of how much you could expect to pay, Unbiased has reported that the average cost of a policy could start from as little of £10 per month, with some policies costing less depending on your circumstances (Unbiased, 2024).
Is accident only income protection insurance worth it?
Whether accident only income protection is worth it is something that only you can decide.
We’re all different and what one person may consider beneficial for them, you might not think is worth your while.
However, if you’re struggling to decide whether you might want to purchase a policy, it might be worth considering things from a financial perspective.
With policies costing an average of £10 per month, you can expect to pay around £120 for a 12-month policy term. However, if you lose your working income you could be losing tens of thousands. The average pre-tax salary in the UK is currently £35,464 (Forbes, 2024). So, if you claim 70% of those earnings from your insurance, you’ll be receiving £2065 per month.
Once you do the math, it becomes clear that this type of protection could save you a great deal if you need to make a claim.
See also: 6 tips for anxious drivers: Grow your confidence
Where can I find accident only income protection insurance?
If you think an accident only income protection insurance policy is the right coverage for you, you’ll be pleased to know that you can purchase a policy easily online.
However, there are numerous providers in the market and each policy can differ significantly, particularly regarding price and what’s. So, it’s important to do your research before committing to a policy.
By carefully evaluating the available options, you’re more likely to find a policy that not only suits your budget, but your individual needs too.
And, if you’re unsure where to start, why not consider a policy from Save More Money? Our Accident Only Income Protection policy provides a benefit of up to £6,000 per month, and you’ll be covered for back-to-work benefits should your salary be affected upon your return.
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