Accident & Sickness Insurance: Stay Financially Secure when Unable to Work

While most of us don’t think twice when it comes to insuring our home, car and other material possessions, we tend to overlook insuring an even more important asset – our ability to earn. Have you ever thought about how you can keep a roof over your head if you had a serious accident or illness that prevented you from working? Without a secure income, how can you afford to pay all your living expenses?

Although we might comfort ourselves by thinking “it will never happen to me”, life is unpredictable, and failing to see reality for what it is can have dreadful consequences for ourselves and our families as a whole. With low wages and high housing costs, for many of us, it’s a daily battle to make ends meets and going a single month without pay can spell disaster.

In such critical times when you’re impacted by an injury or an illness, not only are you unable to work and provide for your family, but you’re also faced with high medical expenses which additionally burden your budget. With that being said, it’s not pessimist thinking to have a plan B in the form of personal accident and sickness insurance. This type of policy can help pay for important bills and allow you to stay financially secure in the event of prolonged periods of unemployment caused by bad health.

You might be thinking is it really necessary to sign up for a personal accident and sickness insurance when the government already offers a sickness allowance for illness, injury and disability. However, even if you’re eligible for government benefits, they might not be enough to pay all your bills and expenses. But a personal accident and sickness insurance can provide you with a monthly allowance of up to 80% of your average monthly income for the time you’re unable to work. The personal accident and sickness coverage is especially helpful for contractors, tradesmen, and people who are self-employed and aren’t eligible for sick leave in the event of injury or illness.

When structuring the right sickness and accident cover for you, there are several factors to take into consideration – the waiting period, benefit period, ownership structures and scope of cover. Note that different types of injuries or illnesses may have different compensation amounts attached to them. What’s more, the policy may also be priced according to your age and general health at the moment you’re signing up.