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What is Accident Insurance, and Is It Worth It?

You don’t want to buy it…

and you hope you never have to use it…

BUT you’ll be glad you have it if the need does arise.

Woligo has partnered with ManhattanLife to offer the Personal Accident Indemnity Delivery product, otherwise known as PAID. The PAID plan helps you pay for out-of-pocket expenses and provides benefits to you or your family for many accidents that can happen without warning.

If your claim is approved, YOU will receive a lump sum payment from your insurance company. That is another benefit of accident insurance. The payment is made directly to you, which means you decide how to spend it.

Help protect your family with accident insurance now

What is included in accident insurance coverage?

Your benefits will ultimately depend on the specific policy you choose. Medical and non-medical benefits can be available through accident insurance benefits. This can include benefits related to various medical events, whether or not your health insurance plan covers them. This can help cover medical bills charged to you before you reach your deductible. Each policy has a fixed amount for covered accidents.

This is not a comprehensive list, but the benefits generally offered through accident insurance may include:

  • 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

Accident insurance vs. other types of insurance

With so many different types of insurance available, it’s often difficult to differentiate one from another. Instead of thinking you need one kind of insurance OR another, it’s essential to understand how they all work together and fill in gaps to help keep you and your livelihood protected.

Accident insurance vs. health insurance

Health insurance is a legal agreement between you and a health insurance company. You agree to pay a premium, usually every month, which is the price for having the health plan. In return, you get a health plan that helps you pay for particular medical care and services, so you aren’t stuck paying for all of the costs on your own. Preventive care is also covered and includes your annual check-up, flu shot, vaccinations, certain wellness screenings, and more.

 

Aside from preventive services, different types of health insurance offer different types of coverage. Covered services could include:

  • Outpatient care
  • Trips to the emergency room
  • Treatment in the hospital for inpatient care
  • Care before and after your baby is born
  • Behavioral health treatment
  • Prescription drugs
  • Physical therapy following an injury, disability, or chronic condition
  • Lab tests
  • Pediatric services

Accident insurance covers qualifying injuries, which might include a broken limb, loss of a limb, burns, lacerations, or paralysis. In the event of your accidental death, accident insurance pays out money to your designated beneficiary. While health insurance companies pay your provider or facility, accident insurance pays you directly.

Accident insurance is considered supplemental insurance and is most helpful when combined with a major medical plan. Your accident coverage will take care of expenses not covered by your medical plan, such as copayments and your deductible. It will also cover non-medical costs like mortgage or rent, utility bills, and other daily expenses.

Knee brace for injury

Accident insurance vs. disability insurance

Accident insurance will give policyholders a lump sum cash benefit to help them meet costs associated with any covered injury. It can help people pay for their co-pays and deductibles when they receive treatment and any other associated costs for which they’re responsible.

On the other hand, disability insurance will replace a portion of the policy holder’s income should they become unable to work due to an injury. That’s why it is nicknamed “paycheck protection.”

 

The two types of insurance are complementary and can work together. An example would be if an individual broke a leg. If the injured party suffered from a covered injury under both policies, they could receive a one-time cash payment through accident insurance. Suppose the injury prevented the policyholder from working for a time. In that case, they could also make a claim for short-term disability benefits that would cover a portion, but not all, of their regular wages.

Ready to purchase your accident policy now?

Accident insurance vs. life insurance

Life insurance is about helping to protect your family and loved ones. In the event of premature death, your life insurance policy can help secure a stable financial future for your family. The life insurance benefit, known as the death benefit, is paid to your beneficiary, often in a lump-sum payment.

 

On the other hand, accident insurance offers benefits in the event of death or injuries resulting only from an accident.

How much does accident insurance cost?

Accident insurance is available for self-employed workers at a competitive price. Many independent workers may expect to pay high teens or low $20s for their premium. Of course, your monthly premium for accident insurance may also increase if your policy covers multiple people. For example, your premium will be higher if the policy is insuring you, your spouse, and your child instead of just you.

Accident insurance for independent contractors and small business owners

Cautious business owners have a personal accident insurance policy in place to prepare for the unknown. Accident insurance is vital for small businesses and sole proprietors since it can be more challenging for such companies to absorb unexpected impacts.

When you work for yourself, you don’t have the benefits of working for a big company. Instead of paid sick leave, you could use accident insurance benefits to make up for your lost income.

Accident insurance for your family

Accident insurance is crucial for you and your family members! If you live any type of active lifestyle, you are automatically more prone to accidents. And it doesn’t have to be cliff diving – even bicycling, rock climbing, skiing, or playing sports puts you more at risk of injury.

Have kids? They are definitely prone to accidents! An accident insurance policy can help cover costs beyond what your health insurance will cover.

child may fall reaching high objects

Falls are the most common cause of injury for kids of all ages.

The Centers for Disease Control and Prevention (CDC) says that roughly 8,000 children are treated in U.S. emergency rooms for fall-related injuries every day. Playgrounds, especially slides and monkey bars, are some of the most common causes of injury. Other common fall hazards include stairs, beds without railings, windows, raised landings, baby walkers, slippery bathtubs, and cluttered pathways.

The frequency of emergency department visits after being struck by or against an object is second only to falls, especially for kids aged 0-14. Most kids get bumped into regularly, especially if they play sports (or have older siblings). Usually, these run-ins are minor accidents caused by playing a little too hard or getting distracted.

There are millions of motor vehicle accidents every year. Next to falls, these accidents are the most common causes of nonfatal injuries among teenagers. And teens between 16 and 19 are at a higher motor vehicle crash risk than any other age group.

Why? One reason is that teens are less experienced drivers or ride with less experienced drivers. The CDC says that the crash risk for teen drivers is especially high during their first few months of licensure. In addition, the presence of other teen passengers increases crash risks.

And don’t forget bites and stings that could be caused by wild animals, insects, or even the neighborhood dog. The vast majority of bites and stings are minor – requiring little to no medical treatment. But according to the previously mentioned CDC and NEISS All Injury Program data, bites and stings are the third most common reason for ER visits for kids aged 0-9.1

Is accident insurance worth it?

Everyone needs accident insurance. People call them accidents for a reason; they are unplanned and can happen to anyone at the most inopportune times.

For example, according to HealthCare.gov, the cost of fixing a broken leg can cost up to $7,500. Your health insurance may only cover 80% of that bill, leaving you a balance of $1,500 to pay out of pocket. Or – you could get stuck with a 3-day hospital stay which could cost up to $30,000. If health insurance only covers 80%, your out-of-pocket share would be $6,000. An accident plan can cover a portion of that amount and leave you with less of a financial burden.

Get accident insurance now

Insurance for self employed and small business owners is essential for SO MANY REASONS. No one plans to get sick or hurt, but most people need medical care at some point.

Accident insurance is convenient because you can apply anytime, like right now, by clicking here. You can also select the benefits that fit your needs, and premiums are relatively low.

For the most inclusive coverage, sign up for an accident insurance policy that covers every member of the family. You’ll rest a little easier knowing that you have the help you need to cover costs if the unexpected happens.

Help protect your family with accident insurance now

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Sources:

  1. NonFatal Data | WISQARS | Injury Center | CDC