Although none of us like to think about it, it’s an unfortunate reality that people die in accidents every day. In fact, around 130 lives are claimed due to an accident every week in Australia. Accidental Death insurance pays a lump sum benefit if you are fatally injured in an accident.
Whilst many people die due to an accident, many more are seriously injured. In 2011-12, almost 9,000 people were hospitalised in Australia every week as a result of an injury. Accidental Injury insurance pays a lump sum benefit if you suffer any one of a number of specified injuries in an accident.
There are no medicals or health questions so you are guaranteed to be accepted for this cover provided you meet the simple eligibility requirements. However, Accident Insurance does not cover death or injury due to sickness or self-inflicted causes.
You can obtain quite high levels of cover with Accident Insurance – up to $500,000 or more for Accidental Death and $200,000 or more for Accidental Injury. The benefit is designed to provide some long term financial assistance for you and/or your family if you are fatally or seriously injured. This type of insurance may be a good option if you are young and in good health and have a family who depend on you or if you have not been able to obtain full life insurance due to not meeting the underwriting requirements.