Accident Insurance, also referred to as Accident/Injury Insurance, is designed to pay money directly to the policyholder in the event of an accident or injury. The coverage will pay for out-of-pocket costs incurred as a result of an injury: urgent care, emergency treatment, exams and x-rays, hospitalization and other expenses related to the injury. The coverage can also pay for items not covered by insurance, such as travel and other incidentals.
Accident plans work well for active families with high-deductible major medical plans. Typically, the payment goes directly to you – not to your major medical carrier. You choose how you want to spend the money. Unlike some types of accident plans or short-term disability insurance, these plans are not designed to pay out a monthly benefit, just a one-time payment based on the amount of the claim.
Most plans will pay out benefits up to $2500, $5000, $7500, or $10,000 after a deductible is met. Deductibles range from $100 to $500. A typical family plan runs approximately $45/month for a $5000 benefit with a $100 deductible.
Most of the claims I have seen have been sports related, but Accident Insurance will cover injuries such as a badly cut finger, broken bones, bicycle and car accidents, and more. The cost to treat a broken leg can easily exceed $10,000. Even if a bone isn’t broken, a visit to an urgent care center or ER can be over $500 just for the visit with x-rays.
Many of my clients have benefited from these policies. One client spent over $3,000 due to his son’s skateboarding accident. He was elated to find out this was covered by his policy since his major medical deductible was over $3000.
What people like about these plans is that they are not discouraged from going to urgent care or their doctor if the injury is questionable. Since the cost to visit the ER can be so expensive, people can be reluctant to go in certain situations. For example, if your child injures his wrist falling out of a tree and you are not sure if it’s broken, sprained or just badly bruised. If your child falls at a play center and hits his head hard on the cement floor (even though 95% of the floor is covered with mats)… These are situations that happened to my youngest son! It is better to err on the side of caution by seeking treatment – and it is a big relief to know that the most you will pay out of pocket is your deductible of $100 (depending on your plan).
There are numerous carriers offering accident insurance, but only a couple of really good ones. Although several major medical carriers offer accident plans, they are simply too expensive. It can be a hassle to apply with a different company, but it is well worth the savings.
Some carriers offer “per service” reimbursement, which limits the payout. The plans I prefer pay the insured regardless of the particular service. The product I recommend (and have for my family) is with VBA – Value Benefits of America. The policy is underwritten by Chubb Corporation. Chubb has an A++ Superior rating by AM Best. I continually look for the top accident plan and I feel like this one provides the best value – and has consistently received good reviews by policyholders and agents. Click here to see quote, benefits, and apply for coverage. For more information, please call Greg at 678-236-1600.