Accident Insurance Covers the Gap
Accident insurance covers gaps between health insurance coverage and out-of-pocket expenses incurred after a covered accident. It provides a lump-sum payment directly to the beneficiary. There are no requirements for how the benefits are spent.
Most often, beneficiaries use accident plan benefits to cover out-of-pocket expenses. These can include deductibles, co-pays, transportation, lodging, meals, and other services. Accident insurance policyholders also use the benefits to cover out-of-pocket costs for medical services not fully covered by health insurance, including ambulance service, medical tests, surgery, physical therapy, and medical appliances.
Many employers offer group accident coverage as part of their employee benefits programs. Employees pay premiums through payroll deductions. Accident plans are popular with employees because of their convenience and low cost. Employers offer the plans to assist employees in navigating the financial difficulties of a serious accident. Employees can elect to cover themselves as well as their dependents.
The coverage kicks in immediately if an insured person suffers injury in an accident. For example, if an insured person who is also the beneficiary falls off a ladder while cleaning his home’s gutters and breaks his leg, he would be paid the full benefit amount by check. He could then spend this money on any out-of-pocket expenses. If an insured person who is not the beneficiary suffers injury, the beneficiary would be paid. This is the case when employees cover their children. Parents often find this coverage helpful because out-of-pocket costs mount quickly if a child is injured in a sports-related or other type of accident.
Insurers offer plans with variable coverage and benefits. Some accident plans are portable. Some offer guaranteed coverage. When coverage requires underwriting, the qualifications vary by plan and insurer. Many insurers offer streamlined underwriting. Many accident plans also come with additional benefits, such as accidental death, dismemberment, loss, and paralysis. Many plans offer supplemental benefits for lodging.
Accident plans offer a cost-effective solution for families to protect their savings or avoid going into debt because of the out-of-pocket expenses often incurred after an accident. Most claims processes are simple, offering accident victims convenience and comfort during a difficult time.