Accident Disability Insurance

Unfortunately, although it's a common belief, National Insurance Tax does not cover you for disability. This was true to some extent prior to 1995, but it is no longer. Today, the government will only help you if you cannot work at all.

Even then, you can only expect to receive about £60 per week in income from the government. This usually does not pay for even the most basic needs, much less a mortgage. Even worse, disability payments received from the government are taxable, so the already small sum received will be further reduced by taxes taken out.

It's also interesting to note the research carried out by Norwich Union; their research shows that almost 2 million people are currently off work because of an injury or long-term illness. Additionally, statistics show that you are up to 20 times more likely to suffer long-term illness before you are 65 than you are to die. This is why accident or disability insurance is so important.

If you take out accident or disability insurance cover, it's relatively easy to understand. You are covered in case you need to make a claim that involves either accident or disability. You are covered for various lengths of time, depending on the claim and type of cover. However, the average length of cover for an accident is 12 months.

If your accident results in a more serious problem such as long-term disability, this may change how long you need to make your claim. As with the accident cover, the maximum is usually for 12 months. However, if you are disabled for a longer period of time, there may be a type of cover that will take this into account. You should speak to your insurance advisor when you open the policy to determine what the best cover is for you.