I have health insurance; are accidents covered? If my accident insurance policy also provides me benefits, am I still eligible to get disability benefits? How exactly does accident insurance work?
In this article, we will be talking about accident insurance, what it is, how to get it and everything in between.
Did you know that about 1.3 million people die annually as a result of traffic accidents? But that’s not all, there are between 20 and 50 million more non-fatal injuries. Interesting right?
What is Accident Insurance?
Accident insurance is a benefit used to pay for accident-incurred expenses. Accident insurance provides you with the necessary financial support in the event of an accident that results in death, bodily harm, or temporary or permanent total/partial disability.
A 100% compensation will be made to the authorized nominee if the accident results in the policyholder’s death.
This means that the death claim will be paid to whosoever the policyholder appoints before his death as a result of an accident.
Other names for accident insurance are:
- Life Accident Insurance
- Personal Injury Insurance
- Personal Accident Insurance
- Supplemental Accident Insurance
- Accident-only Insurance.
Types of Accident Insurance
Accident insurance are classified into two categories,
- Group accident insurance, and
- Individual accident insurance.
Group Accident Insurance
This is a special insurance policy that covers an organization or business as a whole and its employees, against various accidents that may lead to injury or death. It is also known as Group Life & Health Insurance.
Group accident insurance is designed to cover the costs of claims that are incurred suddenly and unexpectedly. This type of insurance is particularly designed for construction and manufacturing businesses where employees and workers are exposed to the risk of accidents.
Employers take this action because they are aware that today’s high deductible medical insurance plans result in stress and financial difficulty for many workers who get sick or hurt.
Individual Accident Insurance
Just as the word implies, individual accident insurance means separate or personal. This type of insurance offers coverage to an individual only. This means that the policyholder himself will be insured for all expenses caused by the accident. It could cover temporary/permanent disabilities, accidental death, etc.
Benefits of Accident Insurance
Many people avoid purchasing personal accident insurance because they think their current life, health, or auto insurance policies will protect them in the event of an accident. It is of the essence to keep in mind, though, that these policies do not offer the same full insurance that personal accident insurance policies do.
Think of an accident insurance policy in comparison to life insurance and a health insurance policy. You would have to have life insurance and health insurance policies in order to make sure your entire family’s financial safety is maintained.
Without accident insurance, you will incure extra expenses for the medical needs of those who need it after an accident. Some accidents can be really expensive. Some people think that an accident is just a fender bender and not a major life-changing event,but it can be.
If a person is injured in an accident, this may result in medical expenses that could cost several thousands of dollars. With personal accident insurance, you have the guaranteed security of coverage to cover these expenses.
This type of insurance is a benefit difficult overlook as it will help to pay for all medical and hospital expenses, rehabilitation and therapy costs, and other related costs.
Accident insurance can give you the peace of mind that in the event of an accident, you will not have to deal with any financial problems by yourself.
This type of insurance is particularly important for people who are always on the go and who may be involved in stressful jobs and is really a required investment for anyone who wants to have financial peace of mind.
Individuals with family members who are high school and college students are encouraged to purchase this type of insurance as well.
One of the biggest accidents to befall young adults is car accidents. With accident insurance, the victim of an accident will receive the full compensation he or she needs simply by contacting and getting in touch with the insurance company.
What should accident insurance cover?
Accident insurance should cover the following :
- Dental Injuries
- Burn
- Concussion
- Fractures and Dislocations
- Lacerations (a deep cut or tear on the skin)
Many insurance policies cover payments for recovery-related procedures, tools, and other costs. These expenses could arise before, during, or following the medical occurrence. Some examples include:
- Post-accident recovery expenses such as physical therapy
- Emergency room charges
- Medical devices such as prosthetics
- Ambulance transport
- Diagnostic tests and procedures such as X-rays.
The money can be used for whatever you require once your claim has been approved. Especially if your accident prevents you from working, it’s helpful for bills like
- Childcare cost
- Utility
- Rent and Groceries.
Costs that are not included in Accident Insurance Policy
Accident policies cover only injury-related costs. They do not cover preventive care, drugs, and medical requirements resulting from past injuries are not to be covered by them.
Note that accident insurance won’t pay you if you get injured while doing anything that is risky intentionally. If you sustain injuries in circumstances like those listed below, benefits are not payable to you.
- Sky-diving
- Hanging-gliding
- Instances of self-harming
- Illegal activities like driving drunk or without seatbelts or committing a felony
- Auto racing
- Professional or semi-pro athletic competitions.
How does accident insurance work?
Accident insurance policies cover either single persons or families. The policy documentation for each policy outline the benefit payments, covered injuries, exclusions and limitations.
Copays are not included in these policies. Deductibles are minimal or nonexistent. Benefits are determined by the severity of the injury. For minor injuries, payouts can be as low as $100, but they can also be as high as $10,000 for serious injuries. Most insurance policies also cover related expenses.
Some programs are made for children and teenagers who participate in sports. Football and other risky sports are covered by higher premium plans.
There are several “guaranteed issue” accident insurance policies. This indicates that you can purchase insurance without having a medical exam. Once you enroll, your insurance is continuously renewed as long as you continue to pay the premium. However, there might be age restrictions.
Although many insurers provide plans that include the two policy types, be sure to note that accident insurance, and accidental death and dismemberment insurance are not the same.
Tips To Choose The Right Accident Insurance Plan
Choosing the right policy is really not as complicated as you might think. Here are a couple of tips that will help you decide which policy is good for you.
- Know the definition of an accident
It’s important to know what an accident is, and how it will affect your life. An accidental injury can be caused by a car accident, slip/fall, trip, and fall, dog bite, animal attack, or fire/explosion.
- Know the coverage details
The policy’s coverage details are what relate most to your own personal protection, and the costs associated with it. By looking at these details, you’ll be able to pick out a policy that fits what you need.
- Know your needs and estimate the cost.
The details of your plan will make it easier for you to choose a policy that is right for you. It’s important to know how much protection you need. For instance, one who is single and lives alone will have a different need than a family with many children. The more people are protected by an accident plan, the higher the cost will be. It’s important to keep in mind the cost of your policy, so you can pay it as soon as possible.
- Know Their payment plan.
Some companies offer plans that are designed specifically for a one-time payment or a combination of repayments. Most insurance companies offer this option, If you have the option of choosing the one, it would be best to go with the one that fits your budget more.
- Know if a medical examination is necessary.
Some policies might require you to go undergo a medical examination as a part of the application process. If this is the case, it would be wise to do your research on which doctors they recommend and choose a provider that offers quality service.
How much does accident insurance cost?
You might be surprised to know that the cost of a policy is actually very moderate. Today, there are many different policies available, and it all comes down to what you are looking for in an accident insurance plan.
The cost of accident insurance will differ depending on the insurer and the benefit level that the insured selects. You won’t mind the price as long as you get the benefit, just like with any insurance policy.
Accident insurance is a nice addition to round out your other insurance coverage, regardless of how active or inactive your lifestyle is. Anyone can slip, trip, or fall at any time, anywhere, including at home.
Think about completing your protection with an individual accident policy or by utilizing group insurance at your place of employment. You might be surprised to know that the cost of a policy is actually very moderate.
Is Accident Insurance Worth it?
Accident insurance is definitely worth it, provided that you find a plan which meets your needs. There are many different levels and types of policies, ranging from full coverage plans to short-term medical packages.
Many people who have accident insurance do to prevent having to use their savings to cover costs related to an accident they have experienced. Financial hardship can often result from having to pull money out of savings.
In order to avoid taking money out of their savings, some people believe it makes more financial sense to pay monthly premiums and receive a lump sum, cash benefit sent straight to them.
In addition, accident insurance is a good idea for anyone who has children or teenagers in their home. Children might become involved in sports activities that might result in an accident, or they could engage in dangerous activities at home that might lead to an accident.
Here is an illustration of how someone might profit from having accident insurance in the event that they break their leg while playing flag football with their kids:
- Cost of medical bills for hospital treatment: $7,800
- Deductible for health insurance: $1000
- 20% coinsurance: $1,560
- Accident insurance payout in full to insured: $2,500
- The insured’s total out-of-pocket expenses were $60.
As can be seen, the accident policy effectively covered the deductibles and co-payments in this case, leaving the insured with little or no need to raid their savings account. The insured would be pleased that the insurance paid them directly as the insurer had promised, and they would see that the cost of coverage was appropriate.
How do you make a claim
After you or a member of your family sustains a qualifying injury, you submit a claim. This entails completing and submitting a claim form along with any required relevant evidence. Your doctor will probably need to share some information as well.
In most cases, claims must be submitted within a month or two. Your deadline will be included in your plan materials.
Your claim ought to be processed in a week or two. The benefit will be paid to you immediately by the insurance provider.
Frequently asked questions
1. Is accident insurance compulsory?
No, it is not compulsory. The main aim of the insurance policy is to help you to recover financial benefits from an accident or injury that you or a family member sustained, and not to force you to obtain the necessary coverage for any particular reason.
2. What are the legal requirements for claiming accident insurance?
The most important thing is that you must have been involved in an accident that was not your fault. You must definitely not be at fault, or any responsible person in your home must have contributed to the accident.
3. What happens after making a claim?
After you have submitted your claim, the insurance provider will investigate the matter and may ask any relevant people involved to testify. You may also contact specialists or agencies to get a second opinion on your condition.
4. How long does it take to claim accident insurance?
It will usually take two weeks or less to process your claim. It all depends on the scale of the accident. The company will process your claim and send you a check if any money is due to you.
5. Is Accident Insurance tax deductible?
Yes, it is, this is one of the main benefits that accident insurance can offer. The IRS allows you to deduct some expenses, including the cost of medical expenses if you have a medical plan and you have paid for health insurance.
6. Is there a time limit to claim accident insurance?
Your claim should be made within the specified time frame. This is usually within a few months after the injury has occurred, so it would be wise to keep track of this date and file your claim within this period.
7. Can you get accident insurance if you are bankrupt?
Yes, there are some kinds of insurance that can be used even when you are bankrupt. Accident insurance is one of them.
8. Can you get accident insurance if you are a student?
Yes, there are different kinds of insurance plans that can be used by the students. In case of injury or damage to a vehicle, such as a collision, the insurance company will pay for any losses that may arise.
Bottom-line, Accident insurance is a wise investment since it offers comfort in the face of a lot of uncertainty. Although family-inclusive personal accident protection is possible, it is wiser to choose an individual cover.
This is due to the possibility that family-inclusive policies may contain numerous restrictions that render the coverage less than ideal compared to an individual plan. Before purchasing accident insurance, be aware that illnesses that result in death or injuries are not covered by such policies, even if the illness may be directly attributed to the nature of your employment.
It is also worth noting that insurance can not deal with the emotional and psychological trauma of an accident, it helps to relieve the financial burden that comes unexpectedly.