Be ready: What is accident insurance, and how can it help you?

Part of our “Be Ready” series of articles exploring workplace Supplemental Health Benefits — and how they can help you be better financially prepared when the unexpected happens.

Maybe you break your ankle playing basketball with your kids. Or you get a concussion when you fall from a ladder. Or perhaps you’re in a hurry in the kitchen and cut your finger deeply, requiring stitches.

Accidental injuries are always unexpected — that’s why they’re called accidents — but the effects can go beyond the physical harm they cause to your body. Accidental injuries like these could also affect your daily life and result in out-of-pocket medical or other costs.

What is Accident Insurance, and how can it help me?

While your primary health insurance may cover most of the costs of your injury treatment, it likely doesn’t cover everything, and even with it, you may have copays or deductibles. In addition, out-of-pocket expenses can result while you’re injured, such as for medical supplies like crutches, transportation to appointments and child care while you’re at physical therapy. That’s where Accident Insurance can be helpful.

Accident Insurance is a type of optional coverage (known as “supplemental health insurance”) that pays benefits for specific injuries or treatment after a covered accident. It doesn’t replace your health insurance but rather it complements it.

Accident Insurance pays you benefits for specific injuries and events resulting from a covered accident — like those broken bones and concussions we mentioned above. Benefit amounts vary based on the type of accident and treatment received. After you file a claim for a covered injury, you could get a benefit paid directly to you so that you can spend it however you like. Accident insurance is intended to help minimize the financial impact of an accident and maybe even help keep you from dipping into your savings for daily living or other expenses that result.

Like most kinds of insurance, there are usually exclusions and limitations, so be sure to check with your employer or review your Certificate of Coverage and any Riders. Accident Insurance is not health insurance and does not satisfy the requirement of minimum essential coverage under the Affordable Care Act.

What kinds of injuries and treatments does it cover?

Coverage will vary by policy, but as an example, we’ll show you some of the many covered benefits and treatments that can be included with Accident Insurance:

• Hospital admission and confinement
• Emergency room treatment
• Medical equipment
• X-ray
• Common injuries like burns, some emergency dental work, lacerations and concussions
• Dislocations
• Fractures

How can I get Accident Insurance?

Like other kinds of supplemental health insurance, Accident Insurance is generally offered through your employer. You can usually enroll when you start a new job and make your other benefits selections or, after that, during your company’s annual enrollment period. Accident Insurance premiums are usually paid by you through payroll deductions, and if you leave your employer or are no longer eligible under the group policy, you may be able to take the coverage with you and pay the insurance company directly.

Who can be covered under my employer’s policy?

In addition to yourself, many Accident Insurance plans offer employees the opportunity to cover their spouse and children. The definitions and age guidelines of “spouse” and “children” may vary by policy or by state, so talk with your employer to verify who can be covered.

How much does it cost?

Many types of supplemental health insurance are considered cost-competitive, but you’ll want to look into your company’s offering for specifics about premiums — especially if you’re wanting to include a spouse or your kids. Typically, this coverage is available without underwriting, meaning there are no health questions to answer when you enroll for coverage.

One more thing to consider: the workplace benefits and savings connection

Whether you’re just learning about supplemental health benefits like Accident Insurance or actively planning to enroll in them, have you ever thought about their connection to your retirement savings?

While Accident Insurance is a separate product with a distinct purpose of providing benefits based on experiencing a covered accident, using it to help lessen the financial impact of an accidental injury could potentially also help your finances in the longer term. Considering your workplace benefits and retirement savings together could help you make more informed financial decisions, for today and tomorrow. Take our quick online assessment to see if you’re maximizing your benefits and savings options.

Check with your HR department to find out if you have the option to enroll in Accident Insurance during your employer’s next open enrollment period.