illness and accident insurance?

mimiduck

I have been thinking of getting an insurance in case of accident or illness and tried finding more details online on google, here and other forums however more I read the more confused I get. I have never been good at insurances so if this seems a silly question shoot me down. I am trying to find an insurance for illness and accident which would for example do the following:
if needed monthly payments to cover any hospital bills etc
If it is a serious illness/accident a possible lump sum of money for any inconvenience if this impacts work

Is there a possible insurance for this?
I am a single woman before 30s, renting

So far I have only found insurance that gives you a monthly amount only.

dunstonh

Is there a possible insurance for this?

Not in the mainstream no. Although multiple policies could get you somewhere close.

Income protection exists in either PHI form or PPI form (the former is the better version. The latter is budget and typically low quality but it is the one most comparison sites sell).

You can get an accident policy but they are cash cows to the seller and have very low claims rates.

csgohan4

why not also consider medical health insurance to get yourself on your feet quicker.


As Dunstonh mentions above, both are valid options with PHI and PPI, but generally consult a broker to get the right product for you as you are likely to compare apples with oranges on comparison websites.

Chris_Pollard

Mimiduck, sorry this is a bit of a long one!

It can be difficult to know exactly what protection will best cover your needs. I do recommend you speak with a financial adviser. They are best placed to assist and will take into account any benefits you might receive from your employer and let you know how the state might help (not much sadly!)

Dunstonh refers to PHI (permanent health insurance) which proves to me he has years of experience in financial services) as it is now labelled IP (income protection). This is an underwritten product that will take account of your health, lifestyle and occupation. If you are unable to work due to illness or injury, you will receive a monthly benefit that is usually a percentage of your monthly earnings - and will take into account any continued benefits you receive from your employer whilst you'll unwell.

When the benefits start will depend on your circumstances and your budget. For example, if you are employed and will receive full pay for three months, then your IP benefit will only be needed after you have been absent for three+ months. If you were self employed and all income stops immediately, you could have a policy that pays out with no waiting period as long as your illness prevents you from working for a minimum number of days - often four or five. The period before your IP benefit would start is called the "deferred period". The longer the deferred period, the lower the premium.

The next factor is how long you the benefit might be paid. Again, this impacts the premium. You can chose a "short term" payment ranging from one-five years, or you can select a longer term, one where payment will continue potentially till you are aged 70.

Some contracts, those provided by LV= and Aviva provide some valuable additional benefits that might help in some of the other areas you mention. For example, one of LV='s products provided a fund for rehabilitation treatment that might help you back to work more quickly. Aviva provides additional monies if you are hospitalised, and also a one off payment (a multiple of monthly benefits) if you suffer from certain illnesses.

You mention covering hospital costs - this would only arise (today) if you received private treatment, or potentially were treated abroad. Private Medical Insurance is the product that can provide you to go "private" rather than be subject to NHS queues. This won't however, provide any replacement for lost income - just fund the treatment.

If you were looking at "lump sum" payments, then search for "critical illness" or "serious illness" insurance. This pays a lump sum if your condition is specifically covered and the policy usually then ends. The most common cause for claims are cancer, heart attack and strokes.

I said at the top, speak to a financial adviser or an insurer to gain proper advice and to ensure that your needs can be matched to the right product. Well done for giving insurance the thought you have. I hope this helps.