Accident & Health Insurance
What Is Accident Insurance? Coverage & Benefits Explained
Your health – and the health of your family – is priceless. But recovering your health, especially when unexpected injuries occur, can come at a surprisingly high cost. An unforeseen medical bill can significantly set you and your family back financially.
In fact, one survey found that less than 50% of U.S. adults have three months’ worth of savings for an emergency expense — such as an unexpected trip to the hospital.1 One way you can better prepare for accidents or injuries is with accident insurance.
For a monthly premium, accident insurance can provide funds to help you pay for unexpected expenses after an accidental injury like a fracture or concussion. A medical plan may leave you with extra costs to cover that an accident insurance plan can help pay. Whatever you need while recovering from an accident or injury, whether that’s another form of transport to get to work or help covering rent while you’re out of work, a payment from accident insurance can help.
How does accident insurance typically work?
When a covered event happens, you submit a claim. Next, a claims professional reviews it and, if approved, a payment is sent directly to you to use as you see fit.
In the event of a policyholder’s accidental death, the benefit will be paid out to the designated beneficiary.
Why might accident insurance be a good idea?
No one knows when an accident may occur, which is why anyone may benefit from accident insurance. It could also be especially beneficial if:
- You and your family lead an active lifestyle that may increase the risk of accidents.
- You don’t receive paid time off, sick days, or workers’ compensation and wouldn’t earn a paycheck while out of work due to an accident.
What does accident insurance generally cover?
An accident insurance policy may help cover costs resulting from:
- Medical services and treatments
- Injuries
- Hospitalization
- Accidental death
- Dismemberment, loss, and paralysis
Your coverage will depend on your specific policy. For a complete list of what’s covered, check with your employer’s benefits administrator if you obtain coverage through work.
Is accident insurance worth it?
Expenses can add up quickly after an accident. For example, treatment for a broken leg can cost up to $7,500.2 If you haven’t met your deductible or out-of-pocket maximum, you could be left paying a large portion of that expense.
Read four other reasons why accident insurance might be worth it for you.
Other supplemental insurance
Life is full of the unexpected. And sometimes, that can put a strain on your family and your wallet. Fortunately, supplemental insurance plans can help cover some costs so you can focus on healing.
Hospital indemnity
While accident insurance may be good for covering a quick trip to the emergency room, hospital indemnity insurance is another option that can help cover costs if you need a longer stay or frequent visits, like accident-related inpatient rehabilitation. You submit a claim and, if approved, receive a check directly.
Critical illness
Similar to the way accident insurance works, critical illness insurance is designed to help you pay for out-of-pocket expenses related to covered illnesses — which may include strokes, cancer, and organ transplants. This supplemental policy may provide a lump-sum payment that you can use when expenses arise.
Disability and absence services
If a covered disability happens and you’re unable to earn your paycheck at work, short-term and long-term disability insurance — as well as paid family and medical leave — can help support you financially. You may be able to receive weekly payments for three months to a year, depending on your policy.
Deciding on accident insurance plans
When it comes to choosing an accident insurance plan, here are a few questions to ask to make sure you’re getting the right coverage for you:
- What is and isn’t covered by the plan?
- How do you receive payouts (i.e. one payment or multiple payments)?