Personal accident insurance

Personal accident insurance cover is designed to provide a lump-sum payout if you're seriously injured or die as the result of an accident.

It can protect you and your family against loss of income and help them with bills and other expenses.

Also known as personal injury insurance, personal accident cover is often included in life insurance and car insurance policies.

It can also be purchased separately, but before you do so, check any existing policies you have to make sure you’re not already covered.

It varies, depending on your personal circumstances and the level of cover you want, but standalone cover can start from as little as £2 a month.

Personal accident insurance isn’t a legal requirement, so you’re under no obligation to buy it. It’s up to you to decide whether it’s worth it or not.

To help you decide, ask yourself:

• Do you have enough savings to fall back on if needed?

• Do you have other types of income protection that would already cover you?

• If you have life insurance, is personal accident cover already included?

• If you had a fatal accident, would your life insurance cover be enough?

• Do you have death-in-service cover as part of your employee benefits?

Only you can decide the best type of personal accident insurance for your situation. Consider the risks involved with your work and lifestyle to help you determine the best level of cover for your needs.

For example:

• If you take part in risky sports, the best policy for you would be one that covers those specific activities, or

• If you regularly travel abroad, you may want a policy that offers worldwide cover

So, it’s worth reading the small print to check limits and exclusions. That will help you make an informed decision when choosing the best policy for you.

Insurance providers typically have a range of cover levels that you can choose from. For example, you could set a value between £10,000 to £100,000 depending on your needs.

Be aware that the level of cover you choose will affect the cost of your personal accident insurance. The greater the amount you want covered, the higher your premium is likely to be.