There are many reasons to consider accident insurance. As with any insurance, the coverage is designed to protect the policyholder if they experience an adverse event.
High Deductible Health Insurance
In the US, it is now common for health insurance plans to have a high deductible. A deductible is the amount that the policyholder is responsible for paying before the insurance company begins to pay any benefits.
High deductible health insurance plans are increasingly provided by both employer-sponsored plans and individual health insurance policies. Many Americans now have health insurance deductibles that are $2,000, $3,000, $4,000 or more. When this amount becomes larger than someone would want to pay in the event of an accident, accident insurance is a way to add extra protection and offset those costs.
Protecting a Budgeted Income
Many of us manage our expenses through responsible budgeting, and when we’ve worked, saved, and invested wisely, regular cash flow is the reward. Accidents can disrupt our finances and our ability to earn.
Accident insurance provides a bite-sized way to create an extra cushion if something unexpected happens. It’s easier to manage the relatively small cost of insurance over time compared to the unknowable burden of accident-related expenses.
Protecting an Active Life
Some activities are more prone to accidents than others. While we do our best to manage the risks of accidents, it’s not always possible to prevent them. Sometimes the very activities that make life interesting and exciting are the same ones that introduce this risk.
For those who are more active than the average person, an accident policy is a worthwhile consideration. The same benefits that pay in the event of a day-to-day accident can also provide extra coverage in the case of a sports or activity-related accident.
Accident insurance can offset the costs associated with an injury.