How is accident and sickness cover usually paid out?

• A. As a fixed monthly stipend only
• B. As a lump sum only
• C. Can be paid out as an income or as a lump sum
• D. Not payable

Answer: (C)

Accident and sickness cover is intended to provide financial support when you can’t work due to injury or illness. Benefits are usually paid in one of two ways: a regular income (monthly payments) to replace ongoing earnings, or a lump-sum payment when the claim is made. Some policies let you choose between these options (or even offer both), giving flexibility to cover living costs month by month or to meet upfront needs such as debts or care costs. This is why the option stating it can be paid as an income or as a lump sum is the best answer.