An accident can strike at any moment, any time. Though accidents are out of our control, there is one way to prepare in the case of an emergency, and that is to purchase personal accident insurance. You may wonder what is it, however it’s a simple and straightforward process to undergo to ensure you’re protected in the case of an accident.
A personal accident insurance is a type of financial protection that covers costs related to a serious injury or death due to an accident. This is beneficial in case of an event in which your primary health insurance does not cover, as in the case of serious body injuries due to an accident. A personal accident coverage deals with any extra costs that are not included in your existing health insurance plan, such as non-medical costs and other unexpected payments that may incur. After a claim is accepted by your personal accident insurance company, the expenses from the accident are then compensated.
What is personal accident insurance?
One of the first things you should do is check your health insurance policy to see what it does and does not cover. Many health insurance policies cover up to $6,000 for medical expenses. However, other medical expenses like emergencies and sudden illness or loss of limb costs from accidents may not be included in your coverage, so it’s your responsibility to find out.
The out-of-pocket medical expenses, or OOP, refer to medical costs that are not reimbursed by your health insurance. This includes deductibles, coinsurance and co-payments. Non-medical expenses are not included in the primary medical insurance and can range from ambulance transport to admission costs, all of which can leave a hefty bill. These are usually referred to in any insurance plan as miscellaneous expenses.
A report from the US Federal Reserve depicts the fact that nearly half of adults around the country are not properly prepared for a financial disruption due to a medical emergency. Critical diseases, accidents or injuries can occur anytime, which is the main reason why you should opt for a personal accident insurance.
After asking yourself, what is personal accident insurance, you may then wonder what does it covers. An accident coverage policy is meant to offer protection from physical injuries that might occur in everyday life such an injury at work, loss of body parts, permanent disability, injury from a slip, injury from violence such as crime, or injury or death from a road accident. It includes expenses such as co-payments, deductibles, transportation, rehabilitation, or even child care.
It’s important to consider personal accident insurance if you have a job or are self-employed. This is especially important if you work in an area or in a job such as construction or driving where serious accidents are more likely. Other benefits of this policy include accidental death, for which a nominee receives an accidental death compensation, compensation from a permanent total disability from an accident, transportation benefit or even funeral expenses coverage.
Things to consider
There are some things to consider before purchasing personal accident insurance, and that’s if your job is high-risk, if you’re a freelancer, or if you could consider supporting yourself and your family if you’re left out of work from an accident.
insurance for freelancers
One of the best parts about being a freelancer is the freedom to make your own work schedule and work wherever you please. However, if you’re self-employed, then investing in personal accident insurance for freelancers is something you should consider for your own protection. When you’re a freelancer, you don’t have an employer to cover your expenses should you get sick, or to provide you with health insurance. Additionally, you don’t have any paid sick days, so investing in this insurance is wise, especially in the off chance that the accident is so severe, you’re unable to continue working.
The cost of personal accident insurance
Another thing to consider is personal insurance cost. While some policies may only cost a few dollars per month, you need to weigh the risk of your every day life and how much compensation you might require should you need a pay out. If you’re working in construction or at a driving job, both high-risk careers, than you may want to consider a more expensive policy than a job with less of a risk. Some policies will pay you out tens of thousands of dollars in the event of your death, and less in the case of a serious injury.
Another thing to consider if personal accident insurance is right for you, is to assess if you’d be able to pay for medical expenses should you be involved in an accident. If you’d struggle to pay the potential costs of the accident and keep yourself afloat if you were left unable to work, then you should consider this insurance.
Choosing an insurance company
There are a couple of things you should consider before choosing an insurance company that provides accident insurance policies. The most important is to opt for a company that is reputable and serious about its client services. Also, you can verify the provider by using services such as AM Best Rating or Better Business Bureau that are meant to offer unbiased ratings of companies according to both consumer feedback and complaints.
Accident insurance policies are quite different and offer distinct coverage depending on the plan you opt for. Group accident insurances are usually provided at a workplace by the employer, while individual accident insurances are offered directly to consumers for medical expenses or indemnity basis. As said above, for medical expenses, an accident insurance policy reimburses the out of the pocket medical costs that come from an accident. On the other hand, indemnity reimburses a pre-established amount for services offered to help cover the OOP costs that arose from an accident.
Why personal accident insurance is beneficial
What is personal accident insurance and why is it beneficial? There are many benefits to purchasing a personal accident insurance policy. Some of these include security and financial support to you and your family, should there be an accident. Many policies are straightforward and make it easy to submit a claim, so there’s no stress or hassle when filing for a claim in the event of an accident. Some policies allow you to cover your entire family, so this will leave you with the comfort of knowing that you and your loved ones are protected should something happen. Additionally, if you’re left unable to work due to an accident, then personal accident insurance is immensely helpful because it would support you if you’re left without a steady income. These are some important factors to consider when asking yourself what is personal accident insurance and is it right for me.
Hospital and ambulance bills can be costly, and especially so the worse the accident is. It’s important to keep in mind that this would be an investment in your future, your health, and your finances. You’re protecting yourself against debt in the case of an emergency without having to worry about how you’re going to pay for everything afterwards. The more high-risk your environment is, the more you should consider purchasing personal accident insurance.
One of the benefits of personal accident insurance is that it doesn’t increase over time or as you age, since an accident can happen to any one, at any age.
What kind of personal accident insurance should I consider?
When looking for a personal accident insurance, you need to read the fine print. Would the insurance policy cover you if you were outside of the USA? If your job requires you to travel abroad frequently, then you should purchase a personal accident insurance that covers you globally. Additionally, if you have a family, you may want to purchase a blanket insurance policy that covers you, your spouse, and your children.
Double check your home insurance and car insurance policies, as these may come with personal accident insurance coverages already. If they don’t, then it’s time to start considering a policy.
If your home insurance and car insurance does cover personal accident, you’ll want to take a look to see what it includes and excludes. A lot of the time, these coverages are not as broad as a stand alone personal accident insurance policy, which is why it’s a good idea to purchase a separate one so you’re covered in all areas.
The personal accident insurance policies will only pay up to a certain amount and will only pay out if your injury is significant enough. For example, if you’ve lost only 10% use of a limb, then an insurance policy may not pay out unless you’ve lost 50% or more usage. Some cover more than others, so it’s important to take all of these aspects into consideration when purchasing a policy.
If you’re part of a couple, you can purchase a personal accident insurance that covers both you and your partner. Together, this would cost less in a bundle than if you were to purchase two separate policies. This is the same policy for family coverage.
Time to buy a policy
Keep in mind that a personal accident cover does not replace life insurance, but instead it can offer financial support for both you and your family if an unfortunate accident happens that results in injury, disability or death. Moreover, it is best to use this in addition to life insurance. Terms of compensation and definitions differ from insurer to insurer, which shows that you need to carefully read and understand what a certain policy offers.