What Is Accident Insurance And Do You Need It?

What Is Accident Insurance And Do You Need It?

Accident insurance is a type of insurance that can supplement your regular health and/or disability insurance and act as a safety net in the case of an accident. Unlike workers’ compensation, accident insurance is meant to help with the costs of accidents that occur outside of work – which is actually the majority of accidents. Since accidents are unpredictable and can be costly and detrimental to financial health, accident insurance can be very helpful.

Accident Insurance versus Disability

Most people think of disability as the type of insurance that will be most helpful in the event of an injury. While disability insurance can also be helpful, it works a little differently from accident insurance. Disability insurance covers a portion of income over a period in which an individual is unable to work. Accident insurance benefits are paid as a lump sum that is determined based on the extent of injuries, the costs of treatment, and the particular policy that was chosen.

Why Get Both Accident and Health Insurance?

Since health insurance covers injuries caused by an accident, it may seem unnecessary to purchase both types of insurance. Accident insurance can provide a cash transfusion that may be very helpful in dealing with the immediate repercussions of an accident, however. Many health insurance policies have high deductibles that may be difficult to come up with following an accident. In some cases, it may also be more affordable to purchase both types of insurance than to opt for a health insurance policy with a lower deductible.

Who Benefits the Most from Accident Insurance?

Families and elderly individuals typically benefit the most from accident insurance. Children and older adults are more likely to suffer serious injuries resulting from accidents, so accident insurance benefits can be of greater assistance with expenses. Accident insurance can also help to support family members if the main breadwinner for the household suffers a debilitating injury. Single individuals of working age can still benefit from having accident insurance benefits available, however.

How Accident Insurance Can Provide Relief

Since accident insurance benefits are awarded as a lump sum payout, the money can be used to assist with many expenses associated with the injury and treatment that may not be covered by health insurance. Traveling to a hospital, making household changes to accommodate the injury, and covering daily expenses may become more difficult when regular wages are not coming in because of an injury. Accident insurance can help to cover these costs and provide relief while adapting to changes.

To find out whether accident insurance is right for you and your family, call 704-527-4220 today.