Optima Individual PA Toolkit

Selling individual personal accident insurance (PA) can be easy. This guide shows you how.

This document is intended only for use by authorised brokers of Ageas Insurance Limited and for their own internal business use.

About PA

The number of self-employed people in the UK is at its highest level since records began.* 4.6 million people are working for themselves, with the proportion of the total workforce self-employed at 15% compared with 13% in 2008, and 8.7% in 1975.  

When a self-employed person is unable to work due to accident or sickness, the impact on household income and their livelihood can be severe. It’s not just the self-employed who might be vulnerable, people working in or running micro businesses, perhaps with members of their family, could find themselves struggling with financial commitments if they are unable to work. 

When you’ve had a serious accident or are very ill, money worries should be the least of your concerns. This is where Personal Accident Insurance can help.

What is personal accident insurance?

Personal accident and illness insurance is a collection of benefits payable direct to the client in the event of an accident or illness that means they are unable to work. Premiums start at just £100 a year plus IPT. Benefits can be selected as required (lump sum, weekly benefits or both) and are payable as either fixed sums or as a percentage of salary. They can choose when cover applies e.g. 24 hour cover, only at work or more.

Every client can decide what is best for them and a policy can be created to suit their needs and budget. 

Why buy PA Cover?

  • If a self-employed person is unable to work, it could be a struggle to maintain their business and keep clients on board – the impact could be just as damaging to business turnover as a fire or theft. 
  • Personal accident and illness cover can provide benefits to pay for a temporary/contract worker to cover the time they are unable to work or to fulfil obligated contracts.
  • In some instances, people need to retrain because they are unable to continue with their current job, or they may need to make modifications to their home – benefits can support these changes.
  • A lump sum could be used to support their family and home if they are permanently disabled.
  • Benefits can also be used to pay for financial commitments such as the mortgage, loans, household bills, fuel for the car and childcare costs. 
  • Not all employed people will enjoy the security of full sick pay if they are unable to work for a temporary period. PA cover can help fill the gap between Statutory Sick Pay and their usual wage.

*http://www.ons.gov.uk/ons/rel/lmac/self-employed-workers-in-the-uk/2014/rep-self-employed-workers-in-the-uk-2014.html

Selling PA

Questions to pose to your Client

  • Are you committed to maintaining a mortgage, car or any other loan re-payments? How long could you continue paying these if you only had statutory sick pay to live on? A personal accident and illness policy can pay out alongside any company statutory sick pay (SSP) benefits.
  • Are you self employed? Who would maintain your business if you are unable to work? How would you maintain all of your monthly financial commitments?

Myths to Explode and objections to overcome

  • I already have PA cover with my bank or as part of my motor insuranceYou may find this is for low amounts and may not have the weekly benefits provided by PA cover from Ageas.
  • I can’t really justify the expense How long do you think you could cope without your income?  The policy can be created to suit your budget and provide valuable peace of mind.
  • I have health insurance cover in placePA cover is different, it provides cash benefits when you are off work due to accident or ill health while Health Insurance pays for private medical treatment.

Why sell Optima PA cover from Ageas

  • You can earn up to 20% commission.
  • We have a dedicated team to offer you specialist advice, flexible underwriting solutions and help in showing your clients why the cover is important.
  • Ageas's personal accident policy offers great benefits:
    • Death - Lump sum - up to a limit of five times annual gross salary;
    • Loss of limb or limbs, sight, speech and hearing - up to a limit of five times annual gross salary;
    • Permanent total disablement - up to a limit of five times annual gross salary;
    • Temporary total disablement (accident) - weekly benefit - up to a limit of 75% of gross weekly wage. Payable up to a maximum of two years; and
    • Temporary total disablement (illness) - weekly benefit - up to a limit of 75% of gross weekly wage. Payable up to a maximum of one year.
  • Totally flexible policy that we can help you tailor to your client's needs.
  • Basic cover from as little as £100 a year plus IPT.
  • Monthly instalments are available.

Cover

Demystifying the cover - what does that mean?

Cover     Meaning
Death     This benefit is payable if the insured person dies as a result of accidental bodily injury due to an insured event.
Permanent Total Disablement (PTD) This is payable following a severe accident that prevents the insured person from ever returning to their pre-accident usual job. (PTD usual.) Sometimes the PTD is limited to the person not being able to do any job (PTD Any.)
Loss of limb, sight, speech or hearing These effectively describe themselves. A benefit would become payable if the insured person should suffer an accident and lose an arm or permanently lose the use of an arm, for example. Similarly, the benefit would be payable should they suffer an accident and lose their sight, their speech or their hearing. Collectively permanent total disablement (PTD), loss of limbs, sight etc are often referred to as 'capital' or 'caps' benefits as they result in the payment of a one off lump or capital sum.
Temporary Total Disablement (TTD) This is a weekly benefit, payable when the insured person becomes unable to follow their usual occupation as a result of injury. TTD benefits are also available, as an extension of cover, for absence from work because of illness.
Payments are normally made for a maximum benefit period of one or two years.

Policy limits

Policy limits are based on the annual salary but aside from this, the policy can be tailored for the individual's needs. They may require a safety net, a specific amount to bridge the gap between statutory sick pay (SSP) and their usual take home pay, or enough to cover monthly outgoings.

Weekly benefits are limited to 75% of their weekly wage and death and capital benefits have a maximum limit of 5 time's annual salary.

Temporary Total Disability limits

The temporary total disability benefits (TTD) for accident is payable up to 104 weeks and illness to 52 weeks maximum. The client can tailor the benefit period.

Deferment period

Most insurance policies have an excess period and people typically know and understand how this works and how it's applied, our Personal Accident and illness policies have deferment periods. A deferment does not 'use up' the benefits period at all (i.e. just delays the start of the payments).

Deferment period Example

A 14 day deferment period in a 52 week benefit period
Deferment table

Operative times

It's quite usual for personal accident cover to operate with different effective or operative times.
The most common is ''24 hour cover'' which means cover is in force all of the time. Typically personal accident policies do not cover clients while they participate in hazardous sports/activities but we can offer this additional cover as an option.

Alternatively, the client might want cover only whilst they are working or to include commuting to and from work. Premium savings are available by restricting the operative time.

Get a quote

The Information we need for a quote - check list

•    Full name and address
•    Date of birth
•    Height and weight
•    Occupation (as much detail as possible) 
•    Salary
•    Previous medical or injury history if applicable (if yes full details: nature of, dates and period effected)
•    Previous claims history or history of any declined cover if applicable (if yes full details); and
•    Do they participate in any hazardous sports and/or activities?

We are here to help you through the quote process, simply call us on 0370 241 6182 or email us at: patravel.underwriting@ageas.co.uk

Ageas’s Optima personal accident cover

Key points to remember before getting a quote:
Occupations - We will consider most occupation types, but there are certain high hazard occupations that we cannot accommodate, for example, Offshore Workers.  
Benefits - Typical cover for death and capital benefits should not exceed five times an individual's annual salary. We will not write business on the basis of more than three quarters of a weekly wage for TTD benefits.
Operative times - Most covers are arranged on a 24-hour basis, but we will consider other effective times.
Illness cover - Illness cover applies to temporary disability and is only available with 24 hour personal accident cover.

How to get a quote?

Call us on 0370 241 6182 or email us: patravel.underwriting@ageas.co.uk

Documents

Optima Personal Accident Individual