Imagine you’re ripping down the trails on your new mountain bike. Thud. Your front tire hits a root and you go head-over-handlebars. BAM! The glare of the emergency room replaces the soft sunlight of the trail. You broke a bone. Oof.
But no real worries, right? You’ve got health insurance. It will take time to recover, but you’ll get the medical care you need and the insurance provider will foot the bill...right?
For many Americans, not quite.
Gaps in your Health Insurance
Many health insurance policies have gaps in coverage. Gaps mean you must pay out-of-pocket (i.e. cash out of your wallet) for some of the costs of emergency care. These expenses may include:
- Deductible: This is how much you’re responsible for paying out-of-pocket before your insurance provider begins paying for care. In the U.S., high deductible healthcare plans are increasingly common. For some health insurance plans, deductibles may be $2,000, $3,000, or as much as $4,000.
- Coinsurance: This is a percentage of the cost of care you pay after you meet your deductible. You may be required to pay coinsurance until you reach your annual out-of-pocket maximum which can legally be as high as $15,800 for families.
- Copayment: Also known as a copay, this is a fee paid at the time of your medical visit. Copay amounts generally vary by service--you may have a $25 copay for a routine doctor’s visit, while you may have a $250 copay for a trip to the emergency room.
The $6,000 Ski Run and Other Stories
Unfortunately, given these coverage gaps, injuries can cost you thousands of dollars in out-of-pocket expenses even if you have health insurance.
Our friend Matt suffered a skiing accident. On one run, his pole snagged on something beneath the snow. His body continued down the mountain except for his left arm, which was ripped behind him. Matt heard and felt a pop. Pain shot from elbow to shoulder. He summoned ski patrol and beelined it to the ER once he got off the mountain.
Matt tore his left bicep and required surgery to reconnect the tendon. Fortunately, he got the care he needed and regained full use of his arm.
His wallet however, wasn’t so lucky. Despite having health insurance, out-of-pocket expenses set him back $6,000. Matt had the savings to cover the costs, but if he didn’t, his day of skiing would have saddled him with expensive medical debt.
Accident Insurance Is the Waterproof Shell over Your Health Insurance Fleece Jacket
Enter Buddy accident insurance. For less than $10 a day of coverage, you would receive $1,000 for a trip to the ER for a covered accident. This money is paid to you directly regardless of the health insurance coverage you have.
Think of Buddy insurance as the waterproof shell worn over your health insurance fleece jacket. Your health insurance jacket does most of the work keeping you warm and comfortable. Meanwhile, the accident insurance shell adds an extra layer of protection from the wind and rain. Without it, on a really nasty day, you’ll probably feel the cold creep through even with a nice fleece jacket.
And just like a waterproof shell, which you wear only when you need it, Buddy is an on-demand insurance that you pay for only when you need it. You can buy coverage for as little as a day or as long as a year, signing up the same day you need coverage to start.
What’s more, with Buddy, if you’re under 70 years old, you don’t have to worry about being rejected. Everybody is approved. Parents can buy policies for their children. And, you’re covered anywhere in the world your adventures take you.
Why You Need Accident Insurance
Health insurance policies often have gaps. Even with health insurance accidents can end up costing you thousands of dollars. Accident insurance helps bridge those gaps and ensures that a blow to your body isn't such a blow to your wallet.
If you have plans for your savings other than paying medical bills, Buddy’s got you covered. So, go ahead, send it. Just get accident insurance first.
Hunter Pechin originally wrote this post for Buddy's blog. Hunter is a Fractional Marketer and Strategist based in Richmond, VA.