I’m currently researching insurances to cover me should I fall too ill to work and was wondering which is best: Personal Accident Insurance or Critical Illness Cover?
To start with, Drewberry would usually recommend Critical Illness Insurance over Personal Accident Insurance. The main reason for this is that Personal Accident Insurance is an inferior insurance product in comparison to Critical Illness Cover.
Personal Accident Insurance covers you for major injuries specified in the policy documents – usually loss of limbs, major fracture injuries and other scenarios such as loss of sight to both eyes, loss of speech or loss of hearing. For such injuries, you’d receive a small lump sum, generally capped at between £5,000 and £20,000.
The main reason Drewberry would usually recommend Critical Illness Cover is because there are many comprehensive plans on the market which allow you to choose the conditions for which you want to be covered.
Some plans can cover more than 120 illnesses and disabilities. This is compared to Personal Accident plans, which only cover serious injuries.
Critical Illness Insurance plans are medically underwritten at the point of inception so you know exactly what you are covered for from the outset. The sum assured can be a lot higher than with Personal Accident Cover as it is up to you the amount you want to be covered for. For example you may want to ensure the amount outstanding on your mortgage is covered.
Sarah provided an excellent and informative service.