Why Should I Buy Accident Insurance?
There are all kinds of health insurance policies. One of the most popular policies is Accident Insurance which helps to pay for medical costs associated with an accident. Should you invest in this type of protection?
What is Accident Insurance?
An accident insurance policy will pay you a cash benefit upon injury from a covered accident. This is usually defined as an injury due to a sudden, unexpected, and unforeseen event. Some policies will even cover Accidental Death and Dismemberment (known as ADD coverage) so there can also be a life insurance component if you were to die from accidental injuries. Illnesses, from a simple cold to a cancer diagnosis, would not be covered by accident insurance. Policies can be purchased for yourself, a spouse or domestic partner and children.
Some accident policies only pay specified benefits. This means that regardless of the cost of the medical expenses for the accident, the policy will only pay a certain amount. A broken arm, for example, may have a specified benefit of $300. That is the maximum the policy will pay, even if the total bills are $2,500.
Some accident policies will pay up to the policy maximum regardless of the type of injury. A Savers Health specialist can help guide you to the right coverage for you.
What Does Accident Insurance Cover?
An accident, by definition, can happen to any one of us. Injuries can result from many causes such as:
- Car Accidents
- Slip & Falls
- Sports & Other Recreational Activities
- Kitchen Accidents Like Burns & Cuts
- Accidental Poisoning
Medical expenses that result from an injury may include:
- Doctor’s Office & Urgent Care Expenses – Consultation, X-Rays, Treatment
- Emergency Room Expenses– Ambulance, X-rays, Exams, Etc.
- Hospital & Surgical Expenses– Admission/Confinement, Intensive Care or rehab unit, major & minor surgery, anesthesia
- Specific Injury Expenses– Burns, Concussions, Fractures & Sprains, Ear or Eye Injury, Poisoning, Etc.
- Follow-Up Expenses– Physical Therapy & Rehabilitation, Prescriptions, Etc.
Benefits from an accident policy claim are usually paid directly to you so you can use them however you choose. Most people who purchase an accident policy do so to help cover the cost of deductibles, copays and coinsurance on their primary medical plan. It is important to check whether or not the benefits are coordinated with other medical insurance.
What Accident Insurance Will Not Cover
Like most health insurance policies, there are exclusions to coverage. For example, most policies exclude claims from:
- High-risk activities like sky diving or bungee jumping.
- Injuries sustained while playing professional or semi-professional sports.
- Injuries covered under Worker’s Compensation Insurance
- Injuries sustained while engaged in illegal activities
- Attempted suicide
You should check your policy for a full list of exclusions.
Some accident policies exclude coverage for school activities. If you have questions about your plan or need a policy that includes coverage for school activities, let us know.
Is It Expensive?
Accident insurance is very affordable and is cost effective, especially when combined with major medical coverage through an employer or an ACA Marketplace plan. Some policies allow you to purchase greater amounts for different family members (more protection for children, for example), which allows for great flexibility.