Accidents are unplanned. If you find yourself in such a situation, you count on accident insurance to help you cover these unexpected bills. Personally I believe this is one of the best kept secrets today in the insurance business.
This type of insurance began to exist in the end of the 1800s. Since there were many accidents in English railways, a local company started to sell policies in order to insure the lives of passengers traveling by train and provide compensation in the event of injuries. They insured even those passengers traveling on third-class tickets and boarding the roof of the train!
Today the market has changed but the spirit remains the same. Coverage is both for medical and non-medical expenses. Medical expenses include copayments, deductibles, and annual maximums, while the non-medical expenses cover rent (or mortgage), groceries, car payments, and even child care. If you are away on travel, you may also have transportation too — including airport transfers, airfare, and so on. If you are already insured, you can have you pay lower premiums too. Some companies also include a wider coverage such as physical therapy, chiropractor, and — surprisingly — even dental treatment.
In many cases where people have their finances already stretched, that week or month without working ¬— and without payment — is the difference between an apparently normal life and financial ruin. If you consider that the average hospital stay length is 5 days and it costs over $10,000, and also that 69% of Americans have less than $1,000 in savings, then you have a perfect storm brewing. Think of accident insurance as an additional financial protection layer for you. In fact, the way some companies work is very simple: you will receive a lump-sum payment in the event of an accident, paid directly to you, and you can use the money in any way you prefer.
There are three types of risk profiles. Low risk profile occupations, such as white collar professions like lawyer, banker, or any type of office worker with a low chance of having a physical injury. You can also have an intermediate risk profile, such as a blue collar worker such as a builder, engineer, tradesman, contractor, or anyone who works outdoors with a higher chance of having a work-related injury. And you could be a high risk profession, such as a miner, construction worker, electrician, oil field worker, these are all dangerous environments where you could have serious injuries due to the nature of your work.
In other words, in case you have an emergency, then your insurance will cover the financial part and leave your brain free to fully recover your physical and mental health. You and your family will be protected against financial issues during the recovery period.