Day 1 Accident Cover

Day 1 Accident Cover is an additional option for income protection policies which allows you to start receiving a portion of your benefit during your waiting period – meaning you don’t have to wait!

As income protection policies have a waiting period, this option can be a great way to start receiving your benefit sooner.

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How does the Day 1 Accident Cover Option work?

Day 1 Accident Cover pays a portion of your benefit if:

You suffer from an accident

You are totally disabled as a result of the accident

Are totally disabled for at least three consecutive days however you may need to be disabled for at least 30 days in some cases.

This option is generally only available with a waiting period of 14, 30, 60 or 90 days.

Please note that this option only applies if you suffer from an accident and does not cover sickness.

How much can I get paid?

You can receive 1/30th of your monthly benefit for each day of total disablement during your waiting period. For example if you are totally disabled for 60 days and you have a 60 day waiting period and you have a monthly benefit of $3,000, you can receive $100/day for 60 days.

When will the benefit start be paid?

Generally most insurers will consider the start of your 3 consecutive days of total disablement as:

  • When the accident or injury occurred; or
  • When you first sought medical attention for the injury

It is important to consult the relevant Product Disclosure Statement (PDS) for exact start date.

When will the Day 1 Accident Cover benefit end?

The benefit will end:

  • The end of the waiting period; or
  • The insured being no longer disabled;

However please note that if at the end of the Day 1 Accident Cover benefit you are still disabled, your regular monthly benefit will generally commence.

Does this option suit me?

Day 1 Accident Cover may suit you if your circumstances would make it difficult to wait for a long period of time before you can start receiving an income.

It may suit you if:

  • You do not have an immediate source of disposable income to meet day to day living expenses
  • You are self employed

What is an accident?

An accident is generally defined as a bodily injury directly and solely caused by a violent external and visible means, independent of all other causes.

What is total disablement?

For the purposes of income protection cover, total disablement is generally defined as when the insured is:

  • Unable to perform one or more duties of their occupation; and
  • Under the regular care of and following the advice of a medical practitioner; and
  • Not working
Published: June 16, 2015

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