It is not difficult to confuse accident insurance with other types of insurance such as life insurance, disability insurance or even income protection insurance. Accident insurance, however, is quite specific and covers only a limited number on injuries, all of which must result from an accident. It is possible to take out accident insurance on its own or combined with another type of life insurance policy. To understand more about accident insurance, let’s look at what it entails in more detail.

Defining Accident Insurance

By definition, accident insurance provides you with a cash benefit in the event of death or serious injury resulting from an accident. The injury is still considered to be a result of the accident if it occurs within 12 months of the accident. This cash payout can be used toward covering family expenses or the cost of your extensive treatment. Accident insurance is also available for children. The child accident insurance policy can be taken out independently or it can be linked to the parent’s policy.

What Is Covered in a Child Accident Insurance Policy?

A child accident insurance policy is slightly different from an adult policy in that it also covers a number of diseases. The child accident policy will provide a cash benefit in the event of accidental death or severe injury of the insured child. Severe injury is termed as the permanent loss of use of two limbs, paralysis, deafness, blindness, major head trauma, meningitis or encephalitis. If the accident results in the death of the child, the policy payout can be used towards funeral expenses and any counseling treatment that is required for the surviving family. If a child suffers from any of the above injuries then it is almost certain that special care will be required. In addition, you will probably have to make structural changes and alterations to your home to make it more safe and accessible for them. If the child is of school-going age and suffers from blindness or deafness then special schooling may be required. Often this type of special schooling comes at a premium and is much more expensive than standard schooling. The policy payout can help to make a contribution towards the tuition of the affected child so there isn’t an additional financial burden placed on the family.

What Injuries Are Covered in an Adult Accident Insurance Policy?

In a typical adult accident insurance policy, the coverage extends to the accidental death or major injury of the insured person. A major injury is defined as the permanent and total loss of two limbs, which is typically known as paraplegia if refers to the loss of both legs. It also includes quadriplegia which is the loss of all four limbs. Hemiplegia refers to the loss of two limbs on one side of the body and is covered under accident insurance. Blindness and deafness are also both covered under most standard accident insurance policies. The injury need not necessarily be immediately apparent following the accident. If deafness, for example, results a few months down the line and it is diagnosed that it is as a result of the accident then the accident insurance policy will pay out the cash benefits to the insured person. One of the conditions of the policy is that any of the above serious injuries need to be officially diagnosed by a medical doctor and confirmation needs to be obtained through the insurance company’s own medical practitioners.

Who Is Eligible for Accident Insurance?

Most people will be eligible for accident insurance. In terms of an adult policy, they will need to be between the ages of 18 and 69 years of age. Child policies are valid from birth to 17 years. Once the child turns 18 years old, he or she is required to be on an adult policy. You can take out the policy as a single individual. This is generally termed as key life policy. You can also take out the policy as a combined policy with your spouse or children. This is known as a partner life policy or a family life policy.

Are There Exclusions for Accident Insurance?

A standard accident insurance policy will not cover you if you commit suicide or intentionally cause harm to yourself. In addition, most policies have exclusions and will not cover you if you are involved in any illegal activities or under the influence of drugs or alcohol at the time of the accident.

Aaron Irwin is a representative of Guardian Insurance. With Guardian, insurance cover is uncomplicated and easy to apply for. Our products are transparent, flexible and easy to understand; offering financial protection for your loved ones and peace of mind for you in a matter of minutes, over the phone.For more information about our accident insurance plans, visit us online!