The details on accident insurance
If you sustain an injury that’s bad enough to keep you from working, it could be a financial hardship. While your health insurance will cover most of your medical bills, it can’t help you pay your rent or other expenses. If your injury is bad enough, you may qualify for disability payments, but even then, there will be a waiting period of several weeks. An accident insurance policy can help tide you over in the meantime.
What is it?
An accident policy is a type of insurance policy that pays you if you are injured and can’t work. It provides money over and above your health insurance coverage. Accident policies often are available through employers as part of a voluntary benefits package. By getting a policy through work, you can get lower rates.
Who is it for?
Anyone can benefit from having an accident policy, because you never know when a disabling accident could occur. But it is vital for people who have dangerous jobs and who also don’t receive paid leave, such as laborers and construction workers. It also is a good idea for people who are self employed.
How does it work?
Accident insurance is a type of supplemental coverage that only pays benefits if you sustain an injury that is covered by the policy, and it will only pay benefits that are not covered by your health insurance. If you sustain an injury, you must make a claim with your insurance company, which will evaluate whether the claim is valid and what benefits you qualify for.
Types of coverage
Accident policies can vary somewhat in the types of injuries they cover and the situations in which they occur. Some policies may also include coverage for illnesses. It’s important that you read your policy thoroughly to know what is and isn’t covered.
The main benefit of having an accident policy is getting additional reimbursement above and beyond your medical insurance. Another benefit is that the money usually is paid out as a lump sum, meaning you can use it for any purpose you need to.