Accident Sickness and Redundancy Insurance

Accident sickness and redundancy insurance is an important insurance in that it will provide an income should you not be able to work due to accident sickness and redundancy. Insurance will allow you to protect your mortgage payments and other regular outgoings.

What is it?

As stated, Accident Sickness and Redundancy Insurance, is just one of many forms of protection a borrower should consider when arranging a mortgage. In taking out an accident sickness and redundancy insurance policy, mortgage payments and other regular outgoings are protected in the event of the borrower being unable to work due to accident sickness or redundancy. Life is full of uncertainties and the fact is each year may thousands of people receive help with their mortgage payments due to payouts through an accident sickness and redundancy insurance.  The financial effect of not being able to work, due to accident sickness and redundancy could be devastating. 

How much does it cost?

The costs of  accident sickness and redundancy insurance can be  relatively modest. Capital  Fortune advisers will take you through your full needs and circumstances and will be able to provide the most suitable and affordable plan to meet your needs. We can arrange accident sickness and redundancy insurance to cover you in the event of your incapacity to work.

Are there 'waiting periods'?

The majority of accident sickness and redundancy insurance policies provide different levels of monthly premiums depending on the level of cover the you require. This is particularly relevant when  dealing with the ‘waiting period’. The waiting period is often expressed as either 30, 60 or 90 days from the date of the event which led to a claim on the policy.

Case Study

John was are absent from work for a period of fifteen weeks following fall where he damaged his back. 

This information shows you how the "waiting period" would effect John’s accident sickness and redundancy insurance claim.his  entitlement to the insurance, its features and costs.

Capital  Fortune advisers will ensure you fully understand the accident sickness and redundancy cover you are receiving, the monthly premium, the benefits under the policy, and when you can expect payment.

Accident Sickness and Redundancy Insurance 30 Day Waiting Period

The Entitlement:  John’s claim would be backdated to day 1, and he would be entitled to receive the benefit for the full 15 weeks of incapacity.

Main Feature: His insured monthly benefit would be paid from day 1 of the incapacity or redundancy , once he had been absent from work for the 30 qualifying waiting days.

The 30 waiting day option is suitable for mortgage borrowers who would not receive sick pay from work.  In light of this the loss of income could impact very quickly on the borrowers financial circumstances.

Costs: The 30 day option is more expensive than the 60 or 90 day options as it will pay out sooner and in light of that, the risk to the insurance company to pay benefit is naturally greater. This risk is therefore recognized in the premium to be paid. .

Accident Sickness and Redundancy Insurance 60 Day Waiting Period

The Entitlement:  John’s claim would be backdated to day 31, and he would be entitled to receive the benefit from the second month. This would then be paid for the remaining weeks of incapacity.

Main Feature: His insured monthly benefit would be paid from day 31 of the incapacity or redundancy, once he had been absent from work for the 60 qualifying waiting days.

The 60 waiting day option is suitable for borrowers who may be paid from work for the first month of illness, and who consider that they can manage financially for the first two months of being absent from work without any pay.

Costs: The 60 day option is less expensive than the 30 day option, but more expensive than the 90 day waiting period.

Accident Sickness and Redundancy Insurance 90 Day Waiting Period

The Entitlement:  John’s claim would be backdated to day 61, and he would be entitled to receive the benefit from the third month. This would then be paid for the remaining weeks of incapacity.

Main Feature: His insured monthly benefit would be paid from day 61 of the incapacity or redundancy , once he had been absent from work for the 90 qualifying waiting days.

The 90 waiting day option is suitable for mortgage borrowers who may be paid from work for the first two months of illness, and who consider that they can manage financially for the first three months of being absent from work without any pay.

Costs: This option is the least expensive of all the options.

Terms and Conditions

Insurance contracts have, in the past, been notorious for their exercising exclusion clauses.  At Capital  Fortune we are trained to carefully assess, and discuss with you, your insurance demands and needs. By doing so, we can then advise you not only of the terms and conditions, but also any important exclusions and limitations of the Accident sickness and redundancy insurance contract.

What does it cover?

We will provide you with an accident sickness and redundancy insurance policy that, in the event of your incapacity to work, will provide an amount designed to pay your mortgage, and other monthly outgoings up to a certain maximum limit which we can discuss with you.

What about self employed?

If you are self employed, why not take a look at further information for sickness insurance for self employed. 

Hopefully we've managed to answer your accident sickness and redundancy insurance questions. However, if you need any assistance why not speak to one of our Mortgage Advisers by calling 0845 3 630 430 or Enquire Online.