Accident

Accident coverage fills some of the gaps in both health and disability insurance. Coverage under an accident policy is limited to qualified, unintentional injuries that occur as the result of an accident. Most policies have set benefit limits for each type of claim, dependent on the severity of the injury. Often benefits are lumped into categories such as permanent total disability, permanent partial disability, broken bones, internal injuries and burns. Some plans can also include death benefits, dismemberment provisions or additional benefits for permanent conditions such as blindness or paralysis. Each policy will contain exclusions. Inherently dangerous activities like skydiving, racing and scuba diving are often excluded, as are illegal activities and accidents due to intoxication. If a pre-existing condition contributed to the accident, it may also be excluded. Benefits are paid to the policyholder or the beneficiary, either in a lump sum or in increments specified in the policy. Payouts under an accident policy can be used for unreimbursed medical expenses, supplies, transportation, child care, lost wages, household bills or anything else you may need to spend it on. It can also be used to supplemental expenses during the elimination period included in disability insurance.

Accident insurance is meant to supplement your health, disability and life insurance plans but it is not meant to replace them.