Accident payment protection |
Accident payment protection
When you take out any life insurance cover it is highly recommended that you also include accident payment protection so that your insurance payment is covered if you have the misfortune of having an accident which prevents you from working. Many people neglect to take accident payment protection but this can have very serious consequences if you have an accident and therefore are unable to earn a living.
An accident payment protection is included in payment protection insurance whereby the insurance holder is assured repayment of debt in the event of an accident, sickness or any such unforeseen event which prevents them from working or getting employment. This policy helps to protect the insurer’s personal debt including personal loans, credit card repayments and mortgages.
An accident payment protection will require some constraints such as the insurer who qualifies for this type of cover will have to be aged between 18 and 65 or higher in certain cases. The insurer needs to be employed for at least 16 hours a week or self-employed for a period of time. There is a time gap between the start of the claim and the payments incurred. Once the insurer accepts the claim the payments are made up to 12 months or even as long as 24 months in some case.
The UK banks have earned high revenue from accident payment protection policies as the claims made in this type of insurance are relatively lower as compared to other insurances like household and motor insurance. Generally most people avoid having accidents or take maximum precautions to prevent them from happening the claims from such insurance is relatively lower. Accident payment protection is also useful for the insurer especially if his job is a high risk one such as involving working in mines, construction sites, in fire fighting departments, navy and more.
This policy assures you payment in case of an accident which is bound to give you peace of mind, especially if there is uncertainty related to the possibility of having an accident depending on your job profile.
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