What you need to know about accident insurance
If you have an accident, whether it is at work or while you are driving or doing something else, you could have costs that far exceed what your health insurance will pay for. For example, you might need to miss several weeks of work foe which you will not be paid. Having accident insurance will provide you with supplemental income to help you pay for bills and make up for lost income.
What is it?
Insurance for accidents is a type of supplemental insurance policy that pays out if you are injured in an accident, no matter what the cause. It often is offered as part of a workplace benefits package offered by employers, but such policies usually are not limited to coverage of accidents that only happen at work.
Who is it for?
Insurance to guard against an accident is a good idea for anyone, but is particularly beneficial for people who have jobs that don’t provide sick leave or other paid benefits. Those often are the same types of jobs where injury accidents are more common, such as construction and other manual labor jobs. An insurance policy for accidents also is a good idea for single parents or those who are the sole breadwinners in their family.
How does it work?
When you have an accident policy, you must make a claim if you think you have a covered accident. Once your insurer determines that your policy requirements have been met, it will pay out your policy benefits, usually in one lump sum. You can then use the money however you see fit.
Accident insurance usually covers serious accidents and will pay out a cash sum if you qualify. Some policies may cover serious illnesses as well, such as cancer, and some also may offer a disability benefit.
The main benefit of having an accident policy is having additional coverage in case you are severely injured in an accident. Not only can such a policy help pay medical and other bills, it also can provide income if you can’t work.