Accidents happen. A common phrase tossed around often, but a reality that is largely underestimated. Whether it’s a car accident or a broken arm, these events can happen to anyone at any time. In fact, every 10 minutes, 441 people will suffer disabling injuries in the U.S., and two-thirds of those are not work-related, according to the National Safety Council. 1
What is also frequently overlooked is the financial impact of an accident. While major medical insurance may pay some doctor, lab, pharmacy and hospital costs, most people have expenses after an accident they never thought about before. From out-of-pocket medical costs associated with the treatment of the accident to a temporary loss of income, a wide range of expenses and situations can put a strain on your finances.
If an accident happened to you or your family member, can your finances handle it? If one of your employees had an accident, does he or she have the savings to cover the extra costs?
What is Accident Insurance?
Simply put, voluntary accident insurance is one of many voluntary insurance policies available to consumers. Voluntary or supplemental insurance plans help people cope with incremental out-of-pocket costs associated with serious accidents or illnesses — costs major medical insurance was never intended to cover. Specifically, voluntary accident insurance policies provide such benefits in the event of a covered accident. It offers a way to stay ahead of the medical and out-of-pocket expenses that add up so quickly after an accidental injury – from emergency treatment, transportation costs to receive care or your everyday bills. With voluntary accident insurance, cash benefits are paid directly to the policyholder, (unless otherwise assigned) and the policyholder decides how or when to use the money.
“Nearly 40 percent of injuries leading to hospitalization occurred during sports or leisure activities, and 44 percent occurred in or around the home.” - National Safety Council 1
Accident insurance provides the policyholder with cash benefits for expenses that may not be fully covered by major medical insurance, including:
- Treatment: pays a specific benefit amount for emergency room treatment, X-rays, diagnostic exams, physical therapy, and follow-up treatment.
- Ambulance: pays a specific benefit amount for ambulance transportation or air ambulance transportation to a hospital
- Hospital Confinement: pays a specific benefit amount for each day you are confined in a hospital due to injuries sustained in a covered accident
- Optional Accidental Death Benefit Rider: pays a lump sum death benefit for covered common carrier accidents and other accidents.
There is no need to undergo a health exam to qualify for voluntary accident insurance. If your employer offers a voluntary accident plan, you may be able to receive payroll rates and have the premiums deducted from your paycheck.
Who Needs Accident Insurance?
Unlike some insurance policies that may be more applicable for certain age groups or at-risk individuals, voluntary accident insurance can be beneficial for most adults. However, only 24 percent of workers overall were enrolled in voluntary accident insurance policies in 2012, according to the Aflac WorkForces Report. 2
For those workers who consider themselves the breadwinner in their family, and whose monthly income is required to support daily living and expenses, a voluntary accident insurance policy is particularly important.
Also, workers without extra savings that can be used in the case of a medical accident should consider an accident policy.
Cynthia's Story
When I broke my leg on April 18, 2011 while on a missions trip to Ensenada, Mexico, I didn't realize the amount of financial burden this would be to our family.
I have great major medical health insurance. However during my hospital visit, I had to pay emergency co-pay as well as a hospital co-payment. In addition to the San Diego hospital charges there was also a Mexico ER charge.
On top of the hospital charges, my husband immediately flew to San Diego to stay with me during my surgery. After being released from the hospital 6 days later, we both flew back to Sacramento. Upon returning to Sacramento, I began weekly physical therapy and was out on disability from my part-time job for almost 5 months.
Not only did my voluntary accident policy cover claims on the cost of my hospital stay, travel expenses, and follow-up doctor's visits and physical therapy sessions, it also covered other out-of-pocket expenses.
For those workers who consider themselves the breadwinner in their family, and whose monthly income is required to support daily living and expenses, a voluntary accident insurance policy is particularly important.
Also, workers without extra savings that can be used in the case of a medical accident should consider an accident policy.
Why Buy Accident Insurance?
The simple answer is voluntary accident coverage helps provide a financial safety net for the policyholder. Even with a comprehensive major medical plan, the out-of-pocket costs both medical and non-medical related can be substantial. In fact, nearly half (47%) of workers would have to use a credit card or borrow from friends or family to pay for out-of-pocket expenses associated with a serious illness or accident.2
Even the most minor of accidents, such as a broken arm, can lead to a temporary loss of income and inability to pay normal living expenses. Your regular bills, including mortgage or rent, car payments and utility bills don’t stop when you’re laid up after an accident. Voluntary accident insurance benefits are paid directly to the policyholder, and can be used however the policyholder decides—even to help with everyday living expenses.
To learn more about how voluntary accident coverage can benefit you or your employees, visit aflac.com/AccidentPlan.
To see how much an accident or illness can cost even if you or your employee has major medical insurance, go to Aflac.com/RealCost.
1 “Injury Facts 2011 Edition,” National Safety Council, 2011, http://www.nsc.org/Documents/Injury_Facts/Injury_Facts_2011_w.pdf
2 “2012 Aflac WorkForces Report,” conducted by Research Now, January 2012
Aflac individual insurance coverage is underwritten by American Family Life Assurance Company of Columbus. Group insurance coverage is underwritten by Continental American Insurance Company (CAIC), a wholly-owned subsidiary of Aflac Incorporated. CAIC is not licensed to solicit business in New York, Guam, Puerto Rico, or the Virgin Islands. For groups sitused in California, group coverage is underwritten by Continental American Life Insurance Company. For Aflac individual insurance coverage in New York or Aflac coverage for groups sitused in New York, coverage is underwritten by American Family Life Assurance Company of New York.