Key idea
Cheap, often overlooked cover for the financial fallout of an accident: death, or a disability that affects your ability to earn.
Personal-accident (PA) cover protects against the consequences of accidents specifically. It pays out on accidental death, and crucially on permanent or temporary disability that stops you working. For a modest premium, it guards the one asset most people underinsure: their ability to earn.
What it typically covers
| Event | Typical payout |
|---|---|
| Accidental death | Full sum insured |
| Permanent total disability | Full or high proportion |
| Permanent partial disability | A defined percentage |
| Temporary disability | Weekly income for a period |
The gap it fills
Term insurance pays on death, and health insurance pays hospital bills, but neither fully replaces income if an accident leaves you alive and unable to work. That disability scenario, financially, can be harder than death, because expenses continue while income stops. PA cover is built for exactly that case, and it is inexpensive because the events are rare.
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