We understand that accidents happen in life and when they do, they leave us with financial and emotional consequences. Having accident insurance coverage will protect you by covering your finances until you are back to life.
An accidental insurance plan offers you peace of mind during some very unexpected events in life. It fills up the gaps by providing cash benefits for your additional expenses when you suffer from any accidental injury or disability. In this guide, we will explore accident life insurance coverage, its benefits, what it covers, and many other things related to it. Read the complete guide to make the best choice for your particular needs.
Understanding Accident Insurance Coverage
An Accident Insurance plan is a type of insurance that offers financial security to the insured in case of any injury or death due to an accident. The policy is designed to cover expenses like hospital stays, medical bills, loss of income, rehabilitation costs, and daily life expenses making sure that you and your family are financially secure in a difficult situation.
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How does Accident Insurance work?
Accident insurance gives cash benefits for injuries or death resulting from an accident. However, the policyholder pays a monthly premium for coverage, so he will be prepared for any unexpected life events coming his way. In case, the policyholder is already insured with a health insurance plan that offers 100% of the medical costs from an accident, he will still get benefits from an accident insurance policy.
What Does Accident Insurance Cover?
Accident insurance coverage varies depending on the injuries covered in your plan and treatments for recovery. Below are some injuries mentioned that are covered by an accident insurance plan:
- Accidental injuries like broken bones, burns, eye injuries, and burns.
- Ambulance services
- Physical therapy and rehabilitation
- Diagnostic tests like CAT scans and X-rays.
- Initial and follow-up physician visits
- Hospital stays treatments and surgical care for the injuries.
- Emergency room care.
What are the types of Accident Insurance Coverage?
There are two main categories of accidental insurance plans. These are:
1- Individual Accident Insurance
This policy covers the loss of vision, limbs, or any other injury, or accidental death of an individual caused by an accident.
2- Group Accident Insurance
This plan is offered by the employer to the employees to get the policies at a discounted rate, based on a company’s strength. Meanwhile, group accident insurance plans are very basic and have limited features as compared to individual accident insurance.
What type of coverage is offered under an accidental Insurance Policy?
The policy offered you the following types of coverages:
Accidental Death Cover: The death benefit of the policy will be paid to the designated beneficiaries in case of the insured’s death.
Permanent Disability Cover: If a policyholder gets a permanent disability due to an accident, a pre-agreed amount of benefit will be paid to him.
Permanent Partial Disability Cover: When an accident causes permanent partial damage to the insured person, he will get 100% benefit of the policy assured.
Temporary Total Disability: If an accident makes the policyholder bedridden for some time, a pre-agreed amount will be paid to him.
How can one use an Accidental Insurance benefit or payout?
Most accident insurance coverage payment is made directly to you and these plans typically become effective within a few days of application. There will be no deductibles, coinsurance, or co-pays in this insurance. Once your benefits are paid, you can use the amount to cover various costs while recovering from an injury, such as:
- Daily life expenses while recovery
- Daycare for your kids
- Home care or follow-up care for yourself
- Transportation expenses
- Medical bills (not covered by health insurance)
What are the benefits of getting Accident Insurance Coverage?
Following are some of the benefits of getting accident insurance policy:
- Offers financial protection to you and those whom you care about.
- Extensive coverage at very reasonable rates.
- Provides worldwide coverage.
- No medical exam and documents are required.
- Easy claim process.
- Available in two categories: self and family
- An option to customize the plan according to your needs.
Read: Should I go for Accidental Insurance? What are the Pros and Cons?
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Why should one buy an Accidental Insurance Policy?
Considering the road and traffic conditions, you are always at a considerable risk of a crash. No matter how safe a driver you are, you can get into an accident due to another driver’s fault. To cover the risk of these accidents, you should have accidental insurance coverage.
Aside from road and traffic accidents, various mishaps also occur at the workplace, especially if someone works in a high-risk setting like an industry where you have to work with heavy machinery. In case of any mishap, you may lead to some severe injury and sometimes even death is a possibility. Having accident insurance plans provides you with financial assistance as well as mental satisfaction by knowing that you are covered in case of any mishap.
Who should buy an Accidental Insurance Plan?
A lot of individuals can get benefits from having an accidental insurance policy like:
Parents: Being parents you are concerned about the financial security of your family. If you want to secure your family from the impact of an accident, this policy will be worth it for you.
Self-employed individuals: If you can’t get group accident insurance coverage via your employer, it is recommended to buy individual accident insurance to get an extra coverage layer for your protection.
People with high-risk professions: Accidental insurance is especially for those who are involved in a high-risk occupation. However, first research your industry and professional hazards according to your role and then get the policy.
People with active lifestyles: If someone participates in activities more often where accidents are common, accident insurance coverage will be worth buying for them.
How to Choose the Best Accident Insurance Plan?
Selecting the best type of accident insurance according to your current situation and specific needs is very easy. Generally, you have to consider two different types of accident insurance, and there are two ways to get them.
First, you have to decide where to get an insurance plan:
- Through an insurance company or,
- Through your workplace (also called worksite benefits or employers policy).
In case you are already insured with an insurance company, you can ask them to add an accidental insurance plan to your existing life insurance policy. However, if you are an employee, you can contact your employer to know whether your company is offering supplemental insurance. If yes, you can enroll in the group plan during the open enrollment season.
Once you have decided where to buy an insurance plan, think about the type of plan you are looking for. You can consider getting these two types of accidental insurance:
- Accident Expense Insurance: covers injuries due to an accident.
- Accident Death Insurance: Death benefits paid to your family in case of your accidental death.
No one wants to think about an accidental condition, but that could not restrain an accident from happening. So getting insured via accident insurance coverage.
What type of queries you may ask while deciding on an Accidental Insurance Plan?
While deciding on the best accidental insurance policy, you have to ask the following questions:
- What injuries are covered by the policy?
- What types of injuries are not covered?
- Will you get an entire lump sum or monthly payments?
- Is there any medical exam to go through for qualifying the plan?
- Do you have to pay the premiums monthly or annually?
- How much time is required to get your payment after an accident?
Conclusion
Accident insurance coverage stands as a pivotal shield against life’s unexpected adversities. Offering financial security in the face of accidents, this insurance plan bridges the gaps left by traditional health insurance, ensuring comprehensive protection.
From covering medical expenses to providing peace of mind during recovery, its diverse benefits cater to various needs. Whether for individuals or families, especially those in high-risk professions, securing this coverage provides invaluable assurance for them.
Frequently Asked Questions (FAQs)
1- Is accident insurance necessary if you already have health coverage?
While health insurance covers medical expenses, accident insurance offers additional financial support, covering costs beyond healthcare, such as daily expenses, transportation, and childcare during recovery.
2- Can accident insurance be purchased independently if not offered by your employer?
Absolutely! Individual accident insurance plans are available for purchase and can provide coverage tailored to your specific needs, even if your employer doesn’t offer group accident insurance.
3- What distinguishes Accident Expense Insurance from Accident Death Insurance?
Accident Expense Insurance primarily covers medical costs resulting from an accident, whereas Accident Death Insurance provides a lump sum payment to beneficiaries in the event of the insured’s accidental death.
4- Are all accidents covered under an accident insurance plan?
Accidents covered can vary based on the policy. It’s essential to review the policy details to understand which specific accidents and injuries are included or excluded from coverage.
5- How long does it take to receive benefits after filing a claim for an accident?
Generally, benefits from accident insurance are disbursed promptly, often within a few days of the claim being approved, aiding in covering immediate expenses resulting from the accident.
Joyce Espinoza, Expert Life Insurance Agent
Joyce Espinoza is a trusted life insurance agent at mLifeInsurance.com. She’s been in the insurance industry for over ten years, helping people, especially those with special health conditions to find the right coverage. At MLife Insurance, Joyce writes easy-to-understand articles that help readers make smart choices about life insurance. Previously, she worked directly with clients at Mlife Insurance, advising nearly 3,000 of them on life insurance options.