People get injured by accident all the time. That could be falling down the stairs or getting into a car accident.
If the injury is bad, it can cost a lot, even with health insurance. There could be a hospital stay, crutches, physical therapy and more — some of which you may have to pay for out of pocket.
One choice to help offset some of these bills is accident insurance. How does it work, and in what types of situations could it come in handy? Find out below.
An unexpected injury could bust your budget — but it doesn’t have to. Learn how accident insurance can help pay medical and personal bills.
What is accident insurance?
Accident insurance is a type of supplemental insurance. It can help you pay for medical bills caused by an accidental injury. (There is a monthly premium for supplemental insurance that is not included in what you’d pay for your primary health insurance.)
There are 2 types of accident insurance.
- Accident indemnity insurance pays a set amount for specific services outlined in the policy. For example, you may receive $1,000 for a diagnostic exam, like an MRI, or $200 for an urgent care visit due to accidental injury. This type of accident insurance works well for someone who wants to know exactly what they’ll receive for a service.
- Accident expense insurance pays benefits based on actual expenses incurred for a covered service. You’ll typically pick a plan with a specific benefit level. That’s the most your plan will pay for covered expenses in a plan year.
We will focus on accident expense insurance. So let’s say you choose a $10,000 accident benefit level. That means that your plan will only pay up to that maximum level for covered expenses during the plan year.
Benefits for most eligible medical bills are available right away. Covered services may have to be received within a certain number of days of the accident. Some plans may also offer a critical illness benefit or a benefit for hospital admission related to sicknesses. Those benefits may have a waiting period.
Many accident insurance plans also include accidental death and dismemberment benefits. That means if you were to die or lose a limb or limbs during an accident, you’d get a specific benefit based on your plan.
It’s important to understand that accident insurance isn’t a replacement for traditional health insurance. Though you can buy a stand-alone plan, it only provides coverage that’s additional to what you’d get from a traditional health plan. In other words, if you were accidentally injured and weren’t covered by health insurance, it could get pricey quickly.
What situations might accident insurance help cover me?
Accident insurance can be particularly helpful in certain situations. Here are 6 situations:
1. You have a common injury. These could include injuries like:
- Broken bones (fractures)
- Burns
- Concussions
- Dislocations of joints
- Lacerations (cuts requiring treatment by doctor)
The types of injuries that are eligible may vary from plan to plan.
2. You are seriously injured. These could include things like eye injuries, internal organ injuries, losing a limb or limbs, or traumatic brain injuries. If this happens, benefits from covered services may help with medical bills and other personal costs.
3. Your death is due to accidental injury. In this case, accident insurance will provide a lump-sum benefit that may help with funeral costs and other expenses.
Did you know that accident insurance may be one of most budget-friendly kinds of insurance you can get? Enter your zip code to see your options.
4. You have non-medical expenses. Even if your health insurance covers it, you will still receive a benefit following an eligible injury. So if your medical bills are already covered, you could use the benefit to help with ongoing expenses like:
- Mortgage
- Car payments
- Daycare
- Groceries
This could help while you’re recovering from your injury. That could be important, too, if you’re the lone source of income in your family.
Accident insurance benefits are paid, so you can use them as you wish.
5. You have a High Deductible Health Plan (HDHP). A High Deductible Health Plan is a type of health insurance plan that has a higher deductible than normal plans. That means you’ll have to pay more out of pocket before the insurance company starts to pay for covered services.
An accident insurance plan can help pay down that deductible, as well as copayments and coinsurance. Those are fixed amounts or percentages you pay for covered health services.
6. You choose complementary coverage. Some accident insurance plans come with extra support for critical illnesses or hospital admission due to sickness. You may receive a lump-sum benefit for covered critical illnesses like heart attack, stroke or certain types of cancer. You may also receive a lump sum benefit for a hospital admission due to sickness.
How do I get accident insurance?
Many insurance companies offer supplemental accident insurance plans. The plan’s prices can vary based on your:
- Age
- Tobacco use
- Number of people in your family that are covered
- Other factors
Whatever your personal situation may be, accident insurance can be a valuable addition to your health coverage.
Accident insurance can cover serious injuries. Explore your options online, or call a licensed insurance agent at 1-844-211-7730 for more details.
For informational purposes only. This information is compiled by UnitedHealthcare, and/or one of its affiliates, and does not diagnose problems or recommend specific treatment. Services and medical technologies referenced herein may not be covered under your plan. Please consult directly with your primary care physician if you need medical advice.
Compliance code:
52206-X-0525
