What is Accident Insurance?
There may come a time when an accident will occur. These are not expected incidents but they are ones that can arise now and again. In order to have the best protection in place, just in case, an accident coverage policy can help. This insurance policy will protect you financially and provide assistance if an accident should occur. Accident insurance is a stand-alone insurance policy. It provides additional coverage separate from your major medical insurance policy and will provide additional benefits should your major medical insurance have a high deductible or not cover accidents.
Accident insurance is paid for with a low-cost monthly or annual premium and will have a one-time cash payout per accident should you need it. The amount that the insured will receive depends on the policy coverage and it will be a pre-determined fixed rate. This type of insurance is often easier to acquire when compared with major medical insurance as it has less restrictions and less pre-qualification requirements in place. It’s a wise idea to have accident insurance if you engage in a somewhat dangerous occupation or recreational activity where an accident is more likely to occur.
How Does Accident Insurance Work?
Accident insurance is an additional coverage plan that works alongside your general medical insurance plan. It comes into play when you have a high deductible on your major medical insurance that can’t be reached with the incident at hand or when the medical treatment is not covered under your general health insurance plan. It’s a way to ease your mind knowing that the bills will get paid, even if they are not paid from your major medical insurance provider. This supplemental plan focuses on accidents and the injuries resulting from the accidents.
When you suffer an injury due to an accident, you’ll go to the hospital, emergency room or your doctor for treatment. You’ll receive all of your necessary care and be provided with follow-up instructions. After you get home and while in the process of recovering from your injury, you’ll put in for a cash-out benefit from your accident insurance provider. When you receive that fixed-rate payment, you can decide how you would like to proceed using the benefits to pay for your multiple bills incurred as a result of the accident. It’s that simple!
Accident plans are easy to sign up for when you decide that this type of coverage is necessary in your life. The monthly premiums are often low in cost, especially when compared to your major medical insurance plan. Also, the enrollment period is usually non-existent and many plans offer immediate coverage, so you can be protected right away. Accident insurance provides an easy way to be covered should an accident occur.
What Does An Accident Policy Cover?
When you have accident coverage in place, you can rest easy knowing that you will get cash-out benefits should you be injured in an accident. The specific coverage will depend on the accident plan you choose and what’s included within that plan. Generally, the lower the premium, the less you’ll receive in a cash payout, however, this will depend on the inclusions within the plan.
Accident insurance benefits can be used to cover a wide array of medical expenses. In general, accident insurance payouts can be used to cover the following medical expenses:
- Hospital visits
- Emergency room visits
- Medical aids, such as crutches, walkers, braces, etc.
- Physical therapy visits
- Co-pays for appointments with specialists
In addition to medical expenses, you can also use your accident insurance cash benefits to pay for incidental expenses related to your injury including the following:
- Mortgage payments
- Rent payments
- Car payments
- Student loans
- Daily living expenses
The accident coverage will help you pay for all of the aforementioned items. Some of the accidents you may find yourself faced with, and those that will put your accident insurance benefits into effect, include the following:
- Eye injuries
- Ear injuries
- Broken bones
- Joint dislocations
- Muscle sprains and strains
- Accidental death
If an injury is associated with an accident, it will often be covered under your accident plan. Each plan will have its individual listing of what is covered under the policy and how much the benefits will be.
Do You Need Accident Insurance If You Have Health Insurance?
Whether you need to obtain accident insurance will depend on your individual circumstances. Those who work or enjoy recreation in an accident-prone environment or are simply accident-prone themselves could use accident insurance as a backup to their major medical insurance plan. Also, if you have a high deductible or restrictive conditions with your major medical insurance plan, then signing up for accident insurance may be a wise investment to make. Remember, accident insurance usually will not have overly costly premiums attached to the policies, so it might be the best financial move to have this in place. This is especially true if your daily habits make accidents more likely to occur and/or your major medical insurance might not cover all accidental injuries.
Is Accident Insurance Worth It?
When deciding whether or not to purchase an accident policy, you want to consider a few factors to determine if it’s worth the additional cost. Here are some reasons you might want to purchase an accident plan:
- Involved in sports and recreational activities where injuries might occur
- Have a family with children and teens
- Do not have a hefty savings account to cover high deductibles associated with major medical insurance
- Have experienced accidents in the past and found it difficult to pay for related expenses
- Do not have the right type of major medical insurance to cover these accidental injuries
As you consider obtaining accident insurance, think about these previously mentioned factors and how they might affect your individual needs. If one or more of these are evident in your life, you may want to explore accident insurance options further.