Personal Accident Insurance

While many individuals opt to invest solely in medical and property insurance, a growing number of people, both in the United States and abroad, are purchasing personal accident insurance to help protect them from the expenses and recurring effects of an accident. Similar to disability insurance in some ways, it offers compensation following a dangerous or debilitating personal accident.

Why is this form of insurance necessary? As with many other financial services, its history extends back quite a long time. In the industrial revolution, accidents were fairly commonplace on building sites and in factories. With employees forced to work long hours in conditions that we're always to their favor, debilitating accidents and painful injuries were a surprisingly common occurrence.

As such, a number of employees were left unable to work due to accidents and recurring injuries, or in many cases unable to ever return to work again. With families to care for and a salary to bring in, a great deal of these injured workers were unable to provide for their loved ones. The needs became clear – employees that could no longer work needed some form of accident compensation.

Today, many public governments offer compensation in the form of accident benefits and disability related income support. While this allows many former employees to get by, it does little to help an ex-business owner or high-earner. Personal accident insurance offers a lump sum payment – a once-off source of income – for those forced out of a job or other form of income because of an accident.

Personal accident insurance is available to cover a variety of different accident types and outcomes, with most policies allowing for compensation due to accidental death or injury. We've looked at the top six reasons to purchase a personal accident insurance policy below, and arranged them in order to help you purchase a policy that suits your needs, your lifestyle, and your personal income level.

Personal accident insurance can protect you from ongoing expenses
At the heart of any insurance policy is protection, either from risk or from expense. Home insurance policies capitalize on (and assist in countering) the fear of losing your home and its possessions. Car insurance policies protect you from expenses associated with an accident. Medical insurance gives a dedicated financial protection from costly hospital care bills and recurring medicine expenses.

Personal accident insurance operates on the same principle, in that it protects you from the risk of an accident destroying a source of income. It also allows you to use a lump sum payment (one off payment) to cover related expenses. Like other forms of insurance, it's a protective layer, covering the immense financial burden that a major workplace or public accident can attract.

Personal accident insurance makes medical expenses trivial
Medical insurance is expensive, and often fickle in the amounts that it will pay out and the services that it will cover. From non-elective surgeries that are billed as 'elective' under your policy to a high level of customer dissatisfaction, the average medical insurance provider certainly isn't in a position to call themselves 'America's favorite' insurance provider.

Personal accident insurance can often be combined with a medical insurance policy to limit hospital expenses and minimize the chance of a claim being rejected. As accident insurance policies pay out a one-off lump sum payment, many claimants opt to use their payout to cover expensive health and hospital expenses that stem from the accident in question, or appear as long-term additional effects.

Good insurance policies protect both you and your family
Unlike disability insurance packages, accident insurance doesn't protect your family through long-term recurring payments. Instead, it tends to operate on a single-payment principle. Following any dangerous or debilitating accidents, you're generally given a lump sum payment which covers both the extent of the accident (personal injury) and the situation in which the accident took place.

For example, if you're driving your vehicle and become involved in an accident which injures your family and yourself, an accident insurance policy with the right characteristics could cover the cost of your family's treatment and your own. This depends on your policy type – many will offer little more than a fraction of the policy's value – but it can often be used to protect your entire family.

Most personal accident insurance policies can be bought through an employer
If your employer already offers some form of personal medical insurance, disability insurance, or other safety or event-based insurance, you may be able to purchase a personal accident insurance policy from them at a reduced price. Speak with your HR representative or employer about the type of policies that are offered, and consider purchasing yours using an employers insurance account.

This will allow you to save money on your entire insurance policy, either for just yourself or as an all-encompassing policy for your family and yourself. While employer-sponsored policies can give service at low costs, however, they're not always the best option. Check their value against what an independent policy can offer, and consider if the small savings are worth the change in policy.

Personal accident insurance policies aren't all that expensive
Many people are surprised when they hear the cost of most personal accident insurance policies, not due to their expense, but due to the relative lack of it. While medical insurance is renowned for high premiums and costly deductible rates, the vast majority of personal accident insurance packages are priced quite reasonably, often costing less than a few dollars every week.

So don't pass it off out of hand purely because of the perceived 'cost' of accident insurance. With the right insurance company backing you and the right policy type, an accident insurance policy has the potential to insulate you from risk without costing an arm an a leg. Consider the total cost of health care following an accident, and the value of a comprehensive policy immediately becomes clear.

Many insurers can combine your policies to simplify payments
Is your insurance portfolio becoming a little too complex? Many individuals hold a portfolio of six, seven, or even eight different insurance policies. There's accident insurance, medical insurance, and even ongoing insurance to keep your business safe from tax changes. It's a confusing nightmare for some, but it's one that can easily be eliminated by speaking with your insurance company agent.

Insurance companies want to keep you as a customer using the simplest, least stressful policy type on offer. Speak with them about combining your policies into a conglomerated insurance package and they may be able to offer assistance. This can take the edge out of buying a personal accident insurance policy, as the entire process of making recurring payments is made much more simple.

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