Accident & Sickness Insurance
Some plans also allow you to add an element of Unemployment Cover too.
Accident and Sickness Insurance shouldn’t be confused with Payment Protection Insurance (PPI), which only provides cover for one financial commitment, such as a loan or mortgage repayment.
This type of cover is particularly important for the Self-Employed who receive no sick pay benefits and would suffer financially if they were unable to work. However, if your budget allows, it may be worth considering a standard Income Protection plan that will offer greater cover over a much longer period.
Frequently asked questions
What is Accident and Sickness Insurance?
Accident and Sickness Insurance is a policy designed to pay out an employee in the event of a serious illness or injury that prevents them from working.
The policy replaces any loss of earnings, allowing you to continue keeping up with your essential monthly outgoings, including household bills, mortgage repayments or rent, providing a higher level of protection than other policies such as Payment Protection Insurance (PPI).
Who is eligible for Accident and Sickness Insurance?
You are eligible to apply for Accident and Sickness Insurance if you are in employment, but this type of cover is also particularly important for the self employed. In the event of an accident, or if they are unable to work due to sickness, the self-employed would not receive any sick pay or benefits when they cannot work, causing major financial difficulties.
What is the difference between Payment Protection Insurance (PPI) and Accident and Sickness Insurance?
Although similar, there is a clear difference between Payment Protection Insurance (PPI) and Accident Sickness Insurance. PPI only offers cover for one financial commitment, mainly mortgage repayments or rent, as opposed to Accident and Sickness Insurance, which also covers other monthly outgoings such as household expenses and food bills.