Short term - Accident, Sickness & Unemployment insurance

For cover over a shorter period, for example a 12 month annually renewable contract, you may wish to consider Personal Accident or Personal Accident & Sickness insurance.

Personal Accident Insurance offers lump sum benefits in the event of death by accident or if you permanently suffer a loss of use of limb, or eye or are permanently disabled to the extent that you are unable to undertake your normal employment again. Weekly benefits are payable if following an accident you are unable to work for a short period of time.

Personal Accident & Sickness Insurance - Sickness cover can also be included to provide lump sum benefits in the event of you suffering loss of sight of both eyes or permanent total disablement by paralysis through illness. Weekly benefits can be included in case you are temporarily totally disabled from your usual occupation as a result of an illness.

In the same way as insurers limit the amount of income protection benefits you may have, you cannot insure for the full amount of your earnings. Typically insurers will allow 60 - 70% of your normal gross weekly wage for temporary total disablement and a multiple of your gross annual salary for lump sum benefits.

Other factors -

Personal accident or accident & sickness is often a cheap, effective solution to the income problems of a short term accident or illness. However, as the policy is annually renewable, in the event of a long term disability, insurers would be entitled to exclude that condition at renewal, increase premiums or refuse cover completely. This problem is solved by an Income Protection policy.

An advantage of these policies is that typically a short deferred period of say 7-14 days is imposed although for higher risk occupations that may be increased.

Activities such as winter sports cover can also be included for an extra premium.

Pre-existing conditions are excluded.

Occupation and benefit levels are the major factors that influence premium costs.

All of the above are typical examples of the issues that need to be considered. That is why it is vital you obtain specialist advice from people who will take the time to understand your circumstances.

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