Personal Accident Insurance
Accident insurance provides supplemental
coverage protection in the event of an accident.
Here are some basics on how personal accident
insurance can help you.
In your daily life, there’s always the risk of an accident happening. Accidents – not just car accidents –
have varying consequences, some of them minor and others have a big impact on daily living. Some
accidents may leave you with huge medical expenses or the inability to work for a period of time. Your
health insurance, disability insurance coverage, or auto insurance, may not fully cover the expenses
related to an accident. That’s where personal accident insurance can help you.

What is Personal Accident Insurance?

Personal accident insurance is a type of supplemental insurance that covers the insured person in the
event of an accident. Any person might get personal accident insurance to supplement another type of
insurance – life, health, or disability. Personal accident insurance may even cover you if you have an
accident while you’re traveling.

Since personal accident insurance is a supplemental insurance, it only pays those expenses that aren’t
covered by your primary insurance. If your primary insurance doesn’t leave any gaps in coverage,
personal accident insurance won’t kick in. When you do have uncovered expenses, your personal
accident insurance plan will typically pay a cash benefit to cover those expenses that were missed by
your primary coverage. The cash benefit may be paid as a lump sum payment or periodic payments,
depending on the terms of your policy. You can use the cash to pay for medical expenses related to your
injury or to cover everyday expenses if you have to miss work because of your accident.

Coverable incidents vary for personal accident insurance. Some policies cover only severe injuries like
the loss of a limb. Other policies might cover simpler injuries like a broken leg or back injury.

Some personal accident insurance policies have
exclusions. For example, a policy may not cover death
due to suicide or substance abuse. The policy may not
cover a car accident if the driver was under the influence
of drugs or alcohol when the accident occurred. You
may be able to customize your policy to fit the type of
accidents that are most likely to happen to you. For
example, if you live in an area that’s frequently hit by
tornadoes, hurricanes, or earthquakes, you may get an
insurance to cover accidents related to those events.
Personal accident insurance is even available with family
coverage.

Who Needs Personal Accident Insurance?

You might need travel accident insurance if you travel for work, you’re in the military and deploy to war
zones, you work in underground mines or with explosives, your daily commute takes you through high-
crime areas, you work with hazardous chemicals, or you work with heavy machinery. In essence, if your
work involves an element of danger, you might need accident insurance coverage.

People who work in higher-risk jobs, as determined by the Occupational Safety and Health
Administration, may have to pay higher insurance rates than those in low-risk fields. Insurance rates are
based on the likelihood and severity of an accident happening. If you work in a low-risk field, personal
accident insurance coverage will be fairly cheap – possibly under $1 per month.

Other Types of Accident Insurance

Accidental death insurance is a type of personal accident insurance that pays beneficiaries if you die in
an accident. The insurance is similar to life insurance, except that it only pays when your death results
from an accident, not from an illness or disease. Accidental death insurance may be cheaper than life
insurance, which is why some people would consider it over traditional life insurance.

A personal disability accident insurance plan covers you if you’re unable to work because of an accident.
While your employer may have a disability plan, this plan will only cover you for a maximum of 26 weeks.
After that time, your only other option would be Social Security disability, which is often difficult to qualify
for. That’s where a personal accident disability plan would be beneficial. The plan would kick in after your
employer’s disability plan expires.
All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy. The Money Alert does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any
information prepared by any unaffiliated third party, whether linked to this web site or incorporated herein, and takes no responsibility. All such information is provided solely for
convenience purposes only. The Money Alert is not affiliated with any of the firms or entities listed unless specifically stated. The Money Alert does not provide investment, tax or legal
advice. Please consult the appropriate professional regarding your personal situation.



                                                                                                 
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Personal Accident Insurance
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