How does accident insurance work?

Accident insurance provides specific cash benefits for injuries caused by a covered accident. These cash benefits may be used for expenses like copays and deductibles. Like disability insurance, your accident insurance policy should pay you or your beneficiaries a cash benefit whether the injury occurred on or off the job. And you can use the money however you want – pay off bills or take a vacation.

So how does it work?

Let’s say your child, who is already covered on your accident insurance policy, fractures his ankle during a football game and is taken by ambulance to the ER. X-rays determine he has a severe fracture, requiring a hospital stay. Your son is released the next day with a nifty little cast. Because you haven’t met your deductible for the year, you find your health insurance doesn’t cover the entire medical bill. So, you’re left paying hundreds or thousands of dollars out-of-pocket. However, since you have accident insurance, you can simply submit this claim to the insurance company you bought it from. After the claim has been approved, you receive the cash (this only takes about 10 business days with Assurity).

Here are some of the advantages to having an accident insurance policy:

• Immediate protection within days of receiving your application
• Helps cover out-of-pocket expenses
• Benefits are paid directly to you
• Guaranteed issue or guaranteed renewable (Some insurance policies require no medical exams or tests to qualify, while others do. Once you’ve been accepted, your rates cannot be raised and your policy cannot be cancelled up to a certain age as long as you continue to pay your premiums.)
• No deductibles, copays or coinsurance
• Health Savings Account (HSA) friendly

What does accident insurance cover?

As a leader in the accident insurance market, Assurity is always looking at how we can help our customers deal with increasingly high deductibles. As the cost of healthcare continues to rise, even a small accident could turn into a big problem for many families. Accident insurance brings meaningful coverage with real cash benefits, and it’s important to understand your coverage and get help when you need it.

Accident insurance provides a cash payment that can be used to pay for medical expenses resulting from a covered accident. Healing and getting healthy shouldn’t mean a gut-punch to the bank account or regular daily life. That’s why these payments can be used for other expenses too – mortgage or rent, groceries, bills, even childcare. You or your family have the freedom to choose how you want to use your money.

So, what does accident insurance actually cover?

Here is a broad list of what’s covered by an accident insurance policy, along with a few specific types of injuries that may be covered within each category:

• Emergency care – hospital treatment, ambulance, X-rays, exams or ER visit
• Specific injury care – burns, concussion, emergency dental work, ear or eye injury or poisoning
• Supportive care – follow-up treatment, physical therapy, prescription meds, supplies, or even transportation and lodging
• Hospital care – hospital admission/confinement, intensive care or rehab unit
• Surgical care – major surgery, ruptured disc, hernia, outpatient surgery or anesthesia
• Accidental death – benefit is paid directly to your beneficiaries if your death is a result of an accident
• Preventive care – some policies offer a wellness benefit that pays you cash back for routine blood work, immunizations and more

The types of injuries listed above are not a complete list. In most cases, the more severe the injury, the higher the benefit amount. For conditions that may be less serious, like a cracked tooth or eye injury, your benefit may only be a few hundred dollars. For more serious conditions, such as a coma or paralysis, you can expect a benefit as high as $40,000 or $60,000. Some accident insurance policies also cover the use of medical supplies and devices, such as crutches or even a prosthetic limb. If you die from an accident, as much as $350,000 could be paid to your beneficiaries.

What’s not covered?

If your insurance company doesn’t specifically identify your injury, you won’t receive a benefit. Accident insurance typically does not cover suicide, accidents arising out of illegal activities, self-inflicted injuries, etc. So, if you were drinking while you got injured, it’s very possible your claim would be denied.

Many insurance plans offer riders – options you can add for additional coverage. A common rider available for accident insurance plans is an accidental death and dismemberment rider. This type of rider pays out a benefit to the deceased’s beneficiaries if the insured died or became dismembered (loss of a limb) from an accident. Many individual accident insurance policies offer accidental death insurance as part of the policy, not as an optional rider – oftentimes it’s actually called accidental death insurance.

Eligibility

Each insurance company has different rules about who is eligible to get benefits. For one, you must be 18 years of age. And at a certain age your accident coverage may end, usually between age 60 and 75. Coverage can be available for both individuals and families, including spouses/domestic partners and children.

Is accident insurance worth it?

Accident insurance is not too complicated. In the event of your death or a disability due to an accident, it would pay you or your beneficiaries cash.

Who may need accident insurance?

• Individuals and families with active lifestyles
• Individuals and families with small children
• Anyone with current health insurance
• Anyone with a limited budget for unexpected medical expenses
• If you’re looking for an affordable alternative to life insurance or if you want to supplement your life insurance coverage
• If you’re unable to qualify for life insurance due to medical reasons
• If a pre-existing condition makes you ineligible for disability insurance, you could receive benefits instead through an accident insurance policy

High health insurance deductibles and unpaid bills can affect your lifestyle, home and family. If your health insurance has higher deductibles or copays, you may benefit from taking out an accident insurance policy. This is because accident insurance offers an easy one-time payment that can help offset your medical expenses. Also, many accident insurance policies are portable, meaning if you leave your job you can take your accident insurance policy with you.

Why do you Need Accident Cover?

Contrary to the popular misconception, a medical insurance plan does not provide complete coverage against the losses arising out of an accident. Although some health insurance policies offer accidental riders, these are not as beneficial as a comprehensive accident insuranceplan. Even if it is, it only covers hospitalization charges, not loss of income.

An accident policy is designed to cover a number of unforeseen eventualities (although not when there is negligence). Accident plans are annual policies that provide coverage in the event of disability, injury or death; caused by accidental or violent events. This includes situations like road accidents, train accidents, or even a fall in the bathroom.

What are the benefits of our accident insurance?