An accident cover is one that provides coverage when unfortunate incidents occur.
It pays a lump sum amount to the holder which helps pay for medical expenses.
Normally, accident insurance provides narrow coverage compared to comprehensive health insurance, but it does step in to pay bills that a standard health cover does not.
Usually, a health policy does not provide benefits to any disabilities caused by accidents.
Even with riders involved, this offer is not on the table.
However, an accident cover will ease the financial burden that comes with treatment and recovery.
It takes care of many practical injury cases that could occur at any place.
Here are some of the injuries that an accident policy provides coverage for: dislocations, bone fractures, eye injury, minor and severe burns, concussions, dental accidents, laceration (a deep cut or tear within the skin or flesh and dismemberment injuries that could render one quadriplegic).
Within these categories, further minor subdivisions are included, ensuring that most if not all injuries are considered.
The payment structure is based on the severity of the accident.
This means that worse injuries attract higher pay while less serious ones attract smaller amounts.
For instance, minor dismemberment coverage significantly varies from catastrophic accidents.
The same way third-degree burns fetch higher prices compared to first degree burns.
Benefits of an Accident Cover
As much as an accident policy overlaps with health insurance in certain aspects, it has advantages that cannot be found in the latter.
For example, an accident cover grants the insured cash benefits whereas a health cover at best only pays your treatment doctors for labor.
It gives you specified amounts that can act as a savings plan.
If you happen to have both, or perhaps a different complementary cover such as disability insurance, you can safely use the proceeds received as you please.
In other cases, you can opt to use it to pay off your deductibles or co-pays. How you choose to spend the money is totally up to you.
Unlike disability insurance, an accident policy allows you to claim coverage for accidents; even if the injuries sustained do not keep you out of work.
For you to be eligible for disability benefits, you must have incurred injuries that drastically changed your lifestyle or left you in a wheelchair.
The pay is designated to crippled individuals.
When your disability insurer fails to pay up due to such exclusions, you are more likely to benefit from an accident cover.
Just like most medical-related policies, an accident benefit comes with dependant protection.
At the age of 18 years, you qualify to own one and equally cover a family member or loved one if you possess the financial ability.
The only downside to dependant coverage is the age cap involved. Most accident policy companies limit the dependant’s coverage up to his /her late twenties.
From there they withdraw the contract.
Accident death cover is also offered.
Critical accidents that lead to abrupt death are catered for as a form of security to bereaved family members.
A comprehensive accident company should be able to turn over 100% settlements to the nominees or beneficiaries.
This goes ahead to cover for burial expenses and if possible, leave behind a financial safety net to relatives or dependants.
Note: this kind of policy is limited to accidental deaths; any other different case scenario is best addressed by a life insurance agreement.
General accident insurance is relatively inexpensive when compared to similar medical contracts.
You can take out one at a premium of less than 20 dollars a month.
This makes it a viable option for anyone unable to afford high insurance deals. Drawing from its vast range of injury inclusions, you are just as well safeguarded.
Low accident premiums translate to higher deductibles. This comes with the backload of heavy out-of-pocket expenses before your insurer can start paying up.
It may take much longer to reach your deductibles and thus increase your medical costs.
To benefit from your accident insurer, go for a cover that is not too cheap. It saves you money in the long run.
Despite the broad injuries an accident cover encompasses, it is very specific.
Certain exclusions or restrictions could potentially disqualify you from payable benefits.
For this reason, it is important to double-check the details on the fine print before signing up for one.
It would be a disaster to suffer an accident yet fail to receive coverage after having serviced your monthly premiums.
Disability insurance is long-term. It pays benefits each month for as long as you remain disabled.
The amounts can total up to 60% of the holder’s monthly check.
An accident insurance on the other hand works of a one- time payment over a preset number of times.
In the event of major accidents, the amount difference could leave you with accrued bills.
In comparison to health insurance, an accident contract comes up short of many provisions, one of them being pre- and post-hospitalization.
Pre hospitalization cover takes care of expenses that arise from an illness, 30 days before hospital admission while a post cover handles medical costs accrued 60 days after the patient was released.
With an accident cover, you are not eligible for such privileges.
It may take care of admission charges, ambulance costs, diagnosis, surgery, and general hospital stay but the insured is not financed for any out of hospital expenses.
Persons who suffer from serious medical conditions may find this a bit disadvantageous.
Like most insurance products, age is an imperative factor.
Young vibrant holders benefit from cheaper premiums, unlike aged individuals.
Most accident insurance companies terminate the contract once the insured reaches a risky age usually between 70-75 years.
Finance experts’ advice for early application if you hope to attract lower-priced contracts.
Independently, an accident policy is fairly advantageous.
Not only does it take care of medical expenses and disabilities retained from accidents but it can equally enrich you if you choose to channel the lump sum into other ventures.
That notwithstanding, its weak points could leave you vulnerable to much worse expenses especially if you do not qualify to claim compensation from your insurer.
Always consider supplementing an accident cover with a much more versatile contracts such as health, life or disability policies.