If 2020 taught the world anything, it’s that life can completely change in an instant. We can’t always prepare for life’s unexpected events, but we can take steps to minimize your risks for times when surprises happen. Accident insurance helps reduce the cost of covered bills if an accident were to affect your livelihood.
Let’s break down what accident insurance is, and whether or not you should get a policy to protect you and your family.
What Is Personal Accident Insurance and Who Should Have It?
Personal accident insurance is insurance that helps cover bills and out-of-pocket medical expenses if you or a family member is involved in a qualifying accident. The insurance benefit goes directly to you, to use at your discretion.
Personal accident insurance can also be called supplemental accident insurance, since it supplements typical health insurance plans. Accident and health insurance are not the same, but they can work together to provide more robust coverage.
Almost anyone can enroll in an accident insurance policy. People who have an active lifestyle or who don’t have a large savings budget for unexpected medical bills should especially consider getting accident insurance. Accident insurance is also beneficial for small business owners and independent contractors. Those who own a business don’t usually have paid leave or workers’ compensation insurance, both of which help cover costs when employees are involved in an accident and rendered unable to work.
Key Features of Personal Accident Insurance
The primary purpose of accident insurance is to help cover out-of-pocket expenses that result from an accident. Medical bills can be expensive. That’s why about a quarter of the U.S. population aged between 18 and 64 say that they or someone in their household experienced difficulty paying medical bills or were unable to pay them in the last 12 months.1
Some of the highest medical bills result from accidents. Trips to the ER or surgeries to repair broken bones can prove very expensive.
What Does Accident Insurance Cover?
Typical accident insurance benefits (AKA the money from your policy paid directly to you) you may receive due to a covered accident include indemnity payments for:
- Hospital admission and confinement
- Intensive care unit
- Air and ground ambulance
- Emergency room treatment
- Emergency dental
- Lodging
- Transportation
- Surgery
- Dislocations
- Fractures
- Burns
- Dismemberments
- Eye injuries
- Major diagnostic exams
- Accidental death
What sets accident insurance apart is that the paid benefit can be used to help cover bills before you reach the deductible in your health plan. You can choose where to receive care. Plus, coverage is usually available even if you change jobs. For many self-employed workers and small business owners, accident insurance is worth it.
Supplemental Accident Insurance
Accident insurance may provide benefits to you and your family members when an accident results in an injury, but there are other situations that your accident insurance policy may not cover and accident insurance alone may not be enough. Additional insurance plans, including life insurance and disability insurance, can help round out your coverage and help protect your family from unexpected events that may occur in life. Below are some other insurance policies that can supplement your accident insurance policy.
Life Insurance
Life insurance helps protect your family and loved ones by providing financial assistance to beneficiaries in the event of a premature death. Learn more about life insurance here.
Disability Insurance
Disability insurance is designed to replace a percentage of your income if a serious injury or illness prevents you from working. To learn more, visit our Disability Insurance page.
Well-Being Discount Plan
Enjoy discounts for health-related services for preventative care, such as dental care, vision exams, and Telehealth services. Read more about what’s included in a well-being discount plan here.
How Much Coverage Do I Need?
After answering the question “Should I get insurance?”, your next question is likely “How much accident insurance do I need?”
The main factor that influences how much you pay for your accident insurance premium is how many people are included on the policy. If your policy is covering you and a spouse or you and your family, you can expect to pay more.
Other than that, everyone pays the same premium for coverage under the same insurance plan. Paid benefits depend on the type of medical service you received. You can expect to receive higher paid benefits for medical care that is typically more expensive.
For the most inclusive coverage, sign up for an accident insurance policy that covers every member in the family. You’ll rest a little easier knowing that if the unexpected happens, you have the help you need to cover costs.
Help protect you and your family by purchasing accident insurance. You can get a quote today by visiting our accident insurance page.
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