Accident and Sickness Insurance
Type of Insurance
Accident and Sickness Insurance
Accident and sickness insurance, also known as disability insurance, provides financial protection in case you suffer an illness, injury, or accident that prevents you from working and earning an income. This type of insurance plays an important role in maintaining your financial security when unexpected health issues arise.
Who Needs Accident and Sickness Insurance?
Accident and sickness insurance can benefit anyone who relies on their income to cover living expenses. It is especially important for heads of households who financially support children and non-working spouses. Even if you have savings set aside, an extended leave from work due to sickness or injury can quickly drain your reserves. Having this supplemental insurance provides peace of mind that your finances will remain stable if you become disabled.
What Does Accident and Sickness Insurance Cover?
Quality accident and sickness insurance will provide income replacement in the event you are unable to work. The amount of coverage is typically a percentage of your gross income, often around 60 percent. Policies have built-in waiting periods before benefits activate, usually 7-14 days for accident claims and 14-30 days for illness claims. The insurance carrier will require documentation from your physician confirming the extent of your disability and recovery timeframe before approving your claim and issuing payments.
Accident and sickness policies also reimburse covered medical expenses related to accident, injury or illness. This includes hospital stays, surgery, ambulance transportation, doctor visits, prescription medications and more. There are often caps on certain benefits, so understand exactly what is covered before purchasing a policy.
Where to Get Accident and Sickness Insurance
Accident and sickness insurance is often offered as a voluntary benefit through employers. If unavailable from your workplace, consider purchasing an individual or family plan from an independent insurance carrier. Work with an experienced agent to review options and select appropriate coverage limits and benefits to meet your needs and budget.
Accident and sickness insurance provides a safety net when you need it most. Understanding what it covers and from whom to buy it empowers you to protect your income and savings from the unexpected. With this supplementary coverage in place, you can recover from injury or illness with less financial stress or hardship.