By this time, everyone has seen a commercial for Aflac with the quacking duck as people discuss how Aflac helped get them money when major medical wouldn’t cover their insurance. What you might not know is that Aflac is a company that provides accident/injury insurance, and there are several other companies that provide the same service to cover you in the case of an accident. You may be wondering, what exactly is accident insurance and what does it actually cover?
Well accident insurance is a type of financial service that pays out a lump sum if you experience certain types of injury as a result of an accident. Injury insurance is similar to health insurance, but instead it works in conjunction with disability insurance and allows you to claim benefits even if the accident doesn’t prevent you from returning to work. Accident insurance can also supplement your medical insurance and cover medical expenses that your plan does not cover. Deductibles have become some of the highest they have ever been, so accident plans can help pay these high out of pocket expenses.
Accident insurance varies by company, and you should learn what exactly they cover before taking out a policy. One company may cover concussions and fractures, but not lacerations and burns so be sure to do your research. While most bone fractures are covered, the severity of the fracture can pay out a different amount. You will get more for a skull fracture than something like a broken arm. For the most part, you can expect that the more severe the injury is, the higher payout you will receive from coverage. A coma will likely incur a payout of around $10,000 where a laceration could be quite a bit less. However, accident insurance can also cover the use of medical devices like prosthetic limbs or crutches. It can be very helpful coverage in the case of a serious injury, and tends to be very affordable.
For the most part, accident insurance is relatively inexpensive. Similar to health insurance, the higher your premiums, the lower your deductible will be and the more benefits will be included. Some accident insurance policies have a deductible, but this is not necessarily the case.
Due to the helpful nature of injury insurance, many companies are now offering the plan to their employees as a benefit to provide them with additional coverage. While we definitely recommend doing your own research into accident insurance, for this particular coverage the positives tend to outweigh the negatives. Who wouldn’t benefit from a little extra cash to help out while you or your loved one is on the mend? Virtually across the board accident insurance is a great addition to any medical or disability insurance plan and has very few downsides should you need to use it.