Accident insurance is a vital policy, as it protects and compensates you when you suffer a qualifying accident. It reimburses you the out-of-pocket expenses associated with the sustained injury, often in lump sum cash payments. Some of the accidents this insurance policy covers are severe burns, broken bones, and emergency room visits.
Accident insurance is also an excellent choice for people who already have health issues or disabilities as it enhances the coverage provided by other health and disability insurance policies.
There are two main categories of accident insurance plans: accident expense insurance and accidental death insurance. While the former covers accidental injuries, the latter pays your beneficiaries in the event of accidental death.
Why Accident Insurance Is Important
Health coverage costs are surging daily, thanks to high co-pays, deductibles, and premiums. Yet, health and disability insurance policies do not cover every expense. Purchasing accident insurance helps supplement health and disability insurance, covering expenses like ambulance services, x-rays, and deductibles. These policies can also cover rent and groceries.
Investing in accident insurance has various advantages, including:
- Straightforward compensation process: An accident insurance policy pays your claim in a lump sum and almost immediately. You’ll get reimbursed as soon as your claim is verified.
- Freedom with your money: You can use the compensation however you want. This reimbursement can cover both medical and non-medical expenses, including rent, groceries, and education.
- No exclusion: Accident insurance plans protect every insured member, whether they have pre-existing conditions or change jobs.
Categories of Injuries Covered By Accident Insurance Plans
Assessing risk and coverage often depends on the type of injury sustained. These injuries are in eight categories, including the following.
- Dislocation: It involves injuries where the bones in a joint are forced out of their usual position.
- Laceration: This injury involves cuts that go all the way through the skin. Deep lacerations go through the fat and muscle layers.
- Concussion: It is a traumatic brain injury, often caused by a blow to the head.
- Fracture: This is a partial or complete break in bones.
- Eye injury: This is a physical or chemical wound inflicted on the eye or its socket.
- Burn: This injury damages the skin and its deeper tissues. It is caused by fire, chemicals, hot liquids, and electricity.
- Dental: This injury is sustained in the mouth. It damages soft tissues in the buccal cavity.
- Accidental death or dismemberment: Accidental death is the death caused by an accident. Dismemberment involves losing vital body organs during an accident.
What Accident Insurance Covers
Accident insurance provides broad protection and compensation against accidental injuries and deaths. The following are the elements and specific injuries covered by this insurance.
- Emergency care: It entails hospital care, ambulance, x-rays, ER visits, and exams.
- Specific injury care: This aspect covers various injury types, including burns, concussions, dental trauma, eye injuries, and poisoning.
- Supportive care: It entails physical therapy, follow-up treatment, meds, supplies, transportation, and lodging.
- Hospital care: It handles hospital admission, confinement, intensive care, and rehabilitative care.
- Surgical care: Accident insurance covers major surgeries, ruptured discs, hernia, anesthesia, and outpatient surgery.
- Accidental death: In this case, your beneficiaries receive compensation in case of accidental death.
- Preventive care: Accident insurance could pay for preventive care, including immunization and routine blood work.
- Medical devices: Accident insurance covers different medical devices and accessories, including crutches and prosthetic limbs.
How Does Accident Insurance Work?
Accident insurance plans compensate an individual depending on the severity of fracture or injury sustained. For instance, suppose you have a skull fracture and a kneecap injury. The compensation for a skull fracture will be much higher than the kneecap, as it will require more medical attention.
Accident insurance plans treat dismemberment differently, and categorize them as either catastrophic or basic.
Catastrophic dismemberment entails the loss of more than one vital organ, for instance, the accidental loss of both limbs. These injuries are often compensated in tens of thousands of dollars.
Basic dismemberment involves the loss of one critical organ, like the loss of one eye. While this category renders an individual partially disabled, it warrants less compensation.
The compensation for burns and burn-related injuries is between $200 and $1000. For instance, second-degree burns are compensated as little as $200, while severe burns attract reimbursements of over $1000. Typically, the amount depends on how damaged the skin is.
Accident Insurance Costs
The costs of accident insurance plans vary, mainly depending on your age and health. This policy could cost between $6 and $20 monthly if you are young and healthy. Yet, most plans require you to pay a deductible before receiving the benefit. Paying higher premiums lowers the amount of your deductible.
FAQs About Accident Insurance
What Are the Differences Between Accident Insurance and Disability Insurance?
Accident and disability insurance plans are relatively similar, as they both compensate you when you get injured. Besides, they all cover similar injuries. Here are some of the most significant differences.
- Disability insurance plans offer a more significant compensation. The amount, often 60 percent of your income, is paid monthly. Unlike accident insurance policies, there is no lump sum amount.
- While disability insurance covers disabilities caused by illnesses, accident insurance plans do not.
- The injuries covered by an accident insurance plan do not have to be disabling, unlike in disability insurance covers.
What is the Difference Between Accident Insurance and Disability Insurance?
Accident insurance plans can cover sudden medical expenses. For instance, beyond compensating for the injury sustained, it helps offset medical bills. Conversely, medical insurance helps offset medical expenses only.
Accident insurance plans ensure that you have extra coins, while a medical cover does not.
Who is Eligible for Accident Insurance?
The eligibility criteria vary from one insurance company to another. Generally, one must be at least 18 years old to qualify and some insurance companies cap the age between 70 and 75 years.
Some of those that need these accident insurance covers are individuals that:
- Have families and active lifestyles
- Have families with young children
- Have current health insurance coverage
- Have a limited budget for sudden medical expenses
- Are unable to qualify for life insurance
- Have pre-existing conditions that bar them from getting disability insurance
- Are looking for a cheaper alternative to life insurance
How Do You Get Accident Insurance Policy?
There are two ways to get an accident insurance cover. It could be through an insurance company or your workplace.
Check this out if you need additional information, resources, or guidance on car insurance.
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