Health Insurance Blog

Why Accident Insurance?

Posted by:
Martha Murray
May 1, 2023
Accident insurance covers costs of accidental injuries. At a low cost per month, it can be a great benefit to help you save money.

What is accident insurance?

Accident insurance helps you pay for medical and other out of pocket costs that you may incur after an accidental injury. This includes emergency treatment, hospital stays, medical exams, as well as other expenses you may face.

Simply put, accident insurance is a form of insurance policy that offers a payout when people experience injury or death, due to an accident. 

How does accident insurance work?

In the event of an accident, accident insurance covers you if you 

  • become disabled
  • unable to work
  • or have a defined injury such as loss of eyesight or hearing, and fractured bones. 

When you have accident insurance and incur an accident, in order to receive the benefits you file a claim with the carrier and they send you a check– which you can use on whatever you want. Some people pay medical expenses up front and then get reimbursed. 

Beneficiaries are paid in either one lump sum, or on a monthly basis to supplement missed income. 

Can anyone get accident insurance?

No, not everyone can get accident insurance because of some limitations. Accident insurance doesn’t cover pre-existing conditions. If you have an accident and get an accident plan after, the accident will not be covered because it is technically a pre-existing condition. 

However, there is no enrollment period for accident insurance, you can sign up anytime. These plans can be coupled with other insurance such as Marketplace plans, short term plans, or employer plans.

What does it not cover?

Accident insurance does not cover 

  • self inflicted injuries
  • dental injuries
  • injuries that occur while under the influence or while committing a crime
  • and accidents that occur as a result of prior illness. 

How much does it cost?

Accident plans start at $6/month and can range up to $90/month if you are a healthy individual. 

Policies can be incredibly inexpensive due to factors like where you live and how much coverage you want. Additionally, personal accident insurance is a good offer for when traditional coverage is too expensive. 

These plans do have deductibles, but some offer a disappearing deductible. This means your deductible is reduced for each policy period you don’t have an accident. 

For example, if you have a $250 deductible the first policy term, and incur no accidents, your deductible for the second policy term becomes $150.

Why should I consider accident insurance?

Health insurance doesn’t cover rehabilitation, so having an accident plan would cover things like physical therapy. If you’ve been refused life insurance in the past, for whatever reason, personal accident insurance is a great option and it usually does not require any medical underwriting. 

If you’re self-employed, you may not have sick leave. Personal accident insurance could protect your finances during that time. 

Accident insurance is great to have coupled with another health insurance policy, or even as a stand alone plan. Having accident insurance could save your finances in the event of an accident! 

No one can predict accidents, but we should expect the unexpected. Why not have something dependable to lean on (for under $100/month) during a financially difficult time?

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