Understanding Accident Insurance
Most people are familiar with health insurance. Health insurance helps cover medical expenses in case of an illness or injury. Accident insurance is different because it only pays benefits in the event of a covered accident. This type of coverage is often offered as a workplace benefit, and this might be particularly true in industries that employ people to perform jobs that are more hazardous than typical jobs. Even though this type of coverage is often offered by employers, it is possible to purchase private plans from some insurers.
What to Know About Accident Insurance:
Of course, all policies may offer different benefits, but these are some things you might look for if you are considering this kind of policy:
A plan may pay benefits for on-the-job and/or off-the-job accidents.
A plan might pay out cash benefits for different types of accidents, so it can help compensate employees for non-medical expenses or lost wages.
Typical accident policies are relatively inexpensive when compared to health insurance policies.
Common policies pay different amounts of cash benefits for different accidents. For example, a simple fracture would not be as severe as a lost limb, and so the benefits paid for a simple fracture would be considerably less than those paid for a severed limb. Some plans also provide coverage for specific types of medical services. For example, you might find plans that provide coverage for ambulance trips or medical air transportation.
Since health insurance only covers medical bills, it might be prudent to also purchase protection that pays cash to help pay bills that medical plans do not cover. If an injured person loses wages because of his accident, he might need extra cash to pay for rent, light bills, and trips to the grocery store.
Should You Buy an Accident Policy?
Before purchasing any type of insurance, compare the policy benefits against the premium. If you are concerned that you would have trouble paying bills if you were hurt in an accident, an accident policy can provide you with extra security.