All About Accident or Sickness Insurance, Liability and Property Insurance
When it comes to insurance, there are a number of different options. Two more options that we will be discussing here are accident insurance and sickness insurance. When deciding whether or not you should have either one or both of these insurance coverages, it is necessary to look at your finances. Ask yourself this question: if I got sick or had an accident, would my finances be able to take the hit? If your finances can not handle a lot of extra expenses right now, then it is probably worth looking into. Medical bills from an unexpected accident or sickness is one of the largest reasons why people have to file for Bankruptcy.
What is accident insurance?
Accident insurance is a policy that offers a payout when people experience an injury, or even death, due to an accident. (Wisegeek, 2014) The claims for this type of insurance are paid out depending on the severity of the injuries that were sustained. For example, for a devastating injury such as dismemberment, the insurance would pay out more for this type of accident.
Accident insurance might be a good choice of insurance for someone who does not have any health insurance, especially if there are loved ones who depend on this person for income. Accident insurance policies can provide coverage for the following accidents (Aflac, 2014):
Intensive care unit (ICU) confinement
Visits to the emergency room
Ambulance (both ground and air)
As you can see, there are many different things that can be covered with accident insurance. The injuries range from minor to very serious. Your individual coverage is dependent upon what is covered under your particular accident insurance policy. In some instances, this type of coverage can also cover expenses such as lodging and transportation in relation to the accident. In most cases, the insurance company will send a cash payment to you directly. Accident insurance does not cover sickness, so this is where sickness insurance comes in, which is discussed in detail in the next section.
What is sickness insurance?
Sickness insurance is a form of insurance that covers only illness and disease and not any accidents. (Black's Law Dictionary, 2014) There are different types of sickness insurance, and more will be discussed in Chapter 9. One type of sickness insurance is a hospital confinement sickness indemnity insurance. This particular type of sickness insurance can provide coverage for the following expenses (Aflac, 2014):
Major diagnostic exams
This particular type of insurance will help with expenses should you have to have a hospital stay due to a sickness. The policy will pay out cash benefits to help you pay for monthly expenses such as rent or mortgage, car payment, utilities and much more.
Important things to know
When it comes to accident insurance, it does not normally cover things such as negligence, acts of God, or natural disasters. In addition, more than likely these types of insurance policies include restrictions on the payouts for risky activities. If you decide that accident insurance is something that you should have, then it is essential to research different agencies and what it covers – and doesn't cover.
Both of these types of insurance are great options for supplemental insurance depending upon your individual circumstances, and are frequently purchased together. These are excellent forms of income protection.
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