Some respond “yes,” while others “no.”
Accident insurance is worthwhile, but as we’ve always maintained, your particular situation must be considered.
For you, is getting insurance a worthwhile investment? It is in the health care and insurance landscape of today.
What is the Policy?
An unexpected injury insurance policy will pay you a tax-free benefit upon injuries from an unexpected incident, defined as a sudden, unexpected, and unforeseeable incident. The plan normally pays out as a lump amount according to a predetermined payment schedule using fixed benefit indemnity. Some programs, however, work in tandem with your main health insurance. Soon, more on the many benefit alternatives.
These policies will cover unexpected injuries involving:
- Unexpected injuries both on the job and off the job.
- Practicing sports (some policies will not).
- Recreational unexpected injuries
An unexpected injury insurance policy will include you, your partner, and your kids.
That means the damage and related costs will be covered if your kids get wounded while playing sports (assuming that is covered). If your spouse dislocates his shoulder while doing yard work, the injury and related expenses will be paid for. While exiting the shower, if you slip on the bathroom floor, you are covered for any injuries and related expenses.
To summarize, if you suffer an unexpected injury, this insurance provides you with a payout. It does not cover degenerative disorders or gradual “wear and tear.” It is not covered if you are harmed while committing a crime.
Reviewing your policy’s restrictions and exclusions is crucial. There are subtle differences, but almost all insurance carriers have comparable exclusions and limitations. Additionally, unexpected injury illness is typically not covered by accident insurance.
How Much Will I get?
It varies. Your benefit depends on the cost of the injury and any related expenses. Take a trip to the emergency room as an illustration. A typical unexpected injury policy might cover the following expenses: $300 for the ambulance, $500 for the ER visit, $1,200 for the surgery, $1,500 for the hospital admission, and $50 for a doctor’s visit.
Regardless of any additional insurance, you may have, it will pay for covered incidents and the necessary treatments. You receive the funds directly. These unexpected injury policies can help offset costs and give you a buffer when premiums, deductibles, copays, coinsurance, and other costs keep rising. Or, you can decide how to use the funds. Benefits are also exempt from income tax.
Good plans also include coverage for unexpected injury, death, and limb loss. In other words, if you pass away due to an unexpected injury, there is a life insurance component. Most insurance policies will cover unexpected injury deaths on common carriers up to $100,000, car unexpected injuries up to $75,000, etc.
As we previously indicated, some plans cover the whole amount of your health insurance’s out-of-pocket maximum. Consider the scenario where you broke your leg while ice skating. You are in the deductible portion of your insurance, so your bill is $2,430. The $2,430 is covered by your plan.
You must choose a “bucket of money” for the year with these “lump sum” plans. The money is spent once it has been spent for the year. Every year, the “bucket” is replenished. Children’s families will need accident insurance plans.
How Much Does It Cost?
Thankfully, unexpected injury policies are usually affordable. But why is that so? Well, the probability of getting hurt from an unexpected injury is low.
However, the ensuing medical bills can be costly when it does happen. A trip to the ER alone costs your insurance many thousands. And, if you are in the deductible stage of your health insurance, you are paying for the entire bill.
So, for one person alone, most insurance premiums cost between $20 and $30 per month, depending on the plan. For a family, of course, it will be a little more like $50 per month or more.
Who Can Benefit from These Accident Insurance Policies?
These policies can help nearly everyone. In fact, nearly 39 million Americans receive medical attention for non-fatal injuries each year. You might benefit from these policies if you:
- Have an active family, play sports, etc.
- Have a hazardous job (some jobs are excluded, but most policies cover seemingly hazardous jobs like fishing, tree cutting, etc.)
- Enjoy hazardous hobbies like motorcycle riding and deep-water scuba diving.
- Want an unexpected injury death and dismemberment benefit on your life insurance policy – we have found that, in most cases, the stand-alone unexpected injury plan costs less and offers more benefits than an unexpected injury death and dismemberment rider on the life insurance policy.
- You drive long distances for work: tractor-trailer driver, consultant, etc.
Who Should Not Get It?
Unexpected injuries can occur anywhere and anytime. That’s why we believe everyone should have some unexpected injury coverage; however, some people should not purchase these policies. They include people and families who do not have the:
- life insurance policy
- disability income insurance policy
- health insurance policy
If you do not have the above, you must purchase those before considering an unexpected injury insurance policy. Moreover, you may not need an insurance policy if you have enough emergency savings to cover the costs associated with an unexpected injury.
These policies tend to have limits on ages. If you are 70 or older, chances are an unexpected injury policy isn’t available. In that case, we recommend a hospital indemnity plan, which operates similarly to an unexpected injury plan. These plans cover hospital services and are useful in tandem with Medicare plans.