What is acci­dent insur­ance and is it worth it? 

Big or small, accidents happen. And the costs related to recovery can add up. With more and more workplaces switching to high-deductible health plans (HDHP), it’s become even more difficult for people to rely solely on their core medical insurance to cover all of their healthcare needs. According to Kaiser Family Foundation's 2024 Employer Health Benefits Survey, the average premium for family coverage has increased 24% over the last five years. This is where supplementing your insurance with additional coverage can be valuable – and essential. Accident insurance can help you keep up with your expenses if the unexpected happens.

Watch this video to learn about how accident insurance generally works.

Read on to learn about accident insurance:

• What is accident insurance?
• How does accident insurance work?
• What does accident insurance cover?
• Is accident insurance worth it?
• How much accident insurance coverage do you need?
• How to get the best accident insurance policy

What is accident insurance?

Accident insurance, also called accident expense insurance, pays cash directly to you if you’re injured or die from an accident covered by your policy. Here are a few types of things accident insurance might cover:

• Emergency treatment
• Hospital stays
• Medical exams
• Supplies
• Lodging
• Final expenses

If you suffer an injury covered by your accident insurance policy, you or your family can file a claim. The insurance company will pay you cash as long as you’ve been paying your premiums (often a monthly payment). You can use this cash however you choose – pay off your medical bills or put it toward your mortgage, childcare, college tuition or anything else you need. If the accident results in death, the benefit would be paid directly to your beneficiaries.

If an accident results in medical expenses your current health insurance doesn’t cover, accident insurance can serve as a financial cushion.

How does accident insurance work?

Let’s say your child, who is covered by your accident insurance policy, fractures their ankle during a football game and is taken by ambulance to the ER. X-rays determine they have a severe fracture, requiring a hospital stay. Your child is released the next day with a new cast, but because you haven’t met your deductible for the year, you find your health insurance doesn’t cover the entire medical bill. Without accident insurance, you could be left paying hundreds or thousands of dollars out-of-pocket. With coverage, you can simply submit this claim to the insurance company you bought it from. After the claim has been approved, you receive a payment for many of the procedures and expenses associated with the hospital stay (this only takes about 10 business days with Assurity).

Here are some of the advantages to having an accident insurance policy:

• Immediate protection within days of receiving your application
• Helps cover out-of-pocket expenses
• Benefits are paid directly to you
• Guaranteed issue or guaranteed renewable (Some insurance policies require no medical exams or tests to qualify, while others do. Once you’ve been accepted, your rates cannot be raised and your policy cannot be cancelled up to a certain age as long as you continue to pay your premiums.)
• No deductibles, copays or coinsurance
• Health Savings Account (HSA) friendly

What does accident insurance cover?

As a leader in the accident insurance market, Assurity is always looking at how we can help our customers deal with increasingly high deductibles. As the cost of healthcare continues to rise, even a small accident could turn into a big problem for many families. Accident insurance brings meaningful coverage with real cash benefits, and it’s important to understand your coverage and get help when you need it.

Here is a broad list of what’s covered by an accident insurance policy, along with a few specific types of injuries that may be covered within each category:

• Emergency care – hospital treatment, ambulance, X-rays, exams or ER visit
• Specific injury care – burns, concussion, emergency dental work, ear or eye injury or poisoning
• Supportive care – follow-up treatment, physical therapy, prescription meds, supplies, or even transportation and lodging
• Hospital care – hospital admission/confinement, intensive care or rehab unit
• Surgical care – major surgery, ruptured disc, hernia, outpatient surgery or anesthesia
• Accidental death – benefit is paid directly to your beneficiaries if your death is a result of an accident
• Preventive care – some policies offer a wellness benefit that pays you cash back for routine blood work, immunizations and more

The types of injuries listed above are not a complete list. In most cases, the benefit you receive depends on the severity of the injury or cost of the procedure. For conditions that may be less serious, like a cracked tooth or eye injury, your benefit may only be a few hundred dollars. For more serious conditions, such as a coma or paralysis, you can expect a benefit as high as $40,000 or $60,000. Some accident insurance policies also cover the use of medical supplies and devices, such as crutches or even a prosthetic limb. If you die from an accident, a larger benefit could be paid to your beneficiaries.

It's possible to extend coverage with optional riders, available for an additional cost. Riders can increase your benefit amount or expand coverage to more injuries and procedures, and are a great way to customize coverage to fit your needs.

Is accident insurance worth it?

Accident insurance is not too complicated. In the event of your death or a disability due to an accident, it would pay you or your beneficiaries cash.

Who may need accident insurance?

• Individuals and families with active lifestyles
• Individuals and families with small children
• Anyone with current health insurance
• Anyone with a limited budget for unexpected medical expenses
• If you’re looking for an affordable alternative to life insurance or if you want to supplement your life insurance coverage
• If you’re unable to qualify for life insurance due to medical reasons
• If a pre-existing condition makes you ineligible for disability insurance, you could receive benefits instead through an accident insurance policy

High health insurance deductibles and unpaid bills can affect your lifestyle, home and family. If your health insurance has higher deductibles or copays, you may benefit from taking out an accident insurance policy. This is because accident insurance offers an easy one-time payment that can help offset your medical expenses. Also, many accident insurance policies are portable, meaning if you leave your job you can take your accident insurance policy with you.

How much accident insurance coverage do you need?

Accident insurance is generally very affordable. To figure out how much accident insurance is right for your family, consider how much you would need if you were faced with a large medical bill because of an accident. If you’re like most Americans, your monthly budget probably doesn’t leave as much room for sudden expenses. What would your family need to keep daily living expenses covered and long-term plans on track?

How would you cover:

• Essentials like groceries and childcare
• Mortgage or rent
• Utility and phone bills
• Regular loan or car payments
• Planning ahead for children’s education or retirement

How to get the best accident insurance policy.

Deciding on the best type of accident insurance to fit your current situation can be easier than you think.

You can get accident insurance two different ways:

1. Through an insurance professional
2. Through your workplace (sometimes called voluntary insurance or worksite benefits)

If you’re currently connected with an insurance professional, you can ask them about adding an accident insurance policy to your existing coverage. If you’re currently employed, you can reach out to your employer (typically someone in an HR benefits role) to see if your company offers supplemental insurance, such as accident insurance. If so, you could enroll in their group plan during open enrollment season, which usually occurs between November and January.

No one wants to think an accident could happen, but if it does, accident insurance can help. To learn more about accident insurance, ask your insurance professional for more information – or check out Assurity’s Individual Accident Insurance or our Group Accident Expense Insurance for the workplace.

NOT AVAILABLE IN NEW YORK.

These products may contain reductions of benefits, limitations and exclusions. For costs and complete details of the coverage, please contact your insurance representative or Assurity to review the policy for more information.

Policy Form No. I H2203 and Rider Form Nos. R I2204, R I2205, and R I2208 are underwritten by Assurity Life Insurance Company, Lincoln, Nebraska.

Policy/Certificate Form Nos. G H1708 and G H1708C, G H1715 and G H1715C, G H1730/G H1730C, G H1731/G H1731C, G H1808/G H1808C and Certificate Rider Form Nos. R G1709C, R G1710C, R G1711C and R G1712C; R G1716C, R G1717C, R G1718C, R G1719C, R G1720C and R G1721C; R G1809C, R G1814C, R G1810C, R G1811C, R G1812C and R G1813C; R G1722C; and R G1736C underwritten by Assurity Life Insurance Company, Lincoln, NE.

Group Accident Expense, Group Critical Illness, Group Hospital Indemnity and Group Short-Term Disability Income insurance provide limited benefit coverage and may contain reductions of benefits, limitations and exclusions. The description of benefits is intended only to highlight the insured employee’s benefits and should not be relied upon to fully determine coverage. If this description conflicts in any way with the terms of the policy/certificate, the terms of the policy/ certificate prevail. For complete benefits descriptions and conditions, see the policy/certificate.

Group Accident Expense, Group Critical Illness and Group Hospital Indemnity insurance are not a substitute for major medical insurance, may not be appropriate for Medicaid recipients, and do not satisfy the requirement for minimum essential coverage under the Affordable Care Act (ACA).

Circular 230 Disclosure: Any U.S. tax information contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matters addressed herein.

Assurity is a marketing name for the mutual holding company Assurity Group, Inc. and its subsidiaries. Those subsidiaries include but are not limited to: Assurity Life Insurance Company and Assurity Life Insurance Company of New York. Insurance products and services are offered by Assurity Life Insurance Company in all states except New York. In New York, insurance products and services are offered by Assurity Life Insurance Company of New York, Albany, NY. Product availability, features and rates may vary by state.