Accident Insurance, What are the Costs, Types, and Benefits?

Accident insurance is a supplementary insurance that helps us pay for out-of-pocket medical and non-medical expenses from an accident or injury. With accident insurance, we receive payment in the form of a lump sum cash benefit that is paid directly to us, rather than to the doctor or hospital. This allows us to use the cash where it impacts us and our family the most, including paying for expenses related to our accident as well as non-medical expenses such as childcare, transportation to therapists, and even rent or groceries.

No matter how vigilant we are, accidents can happen when we least expect them. A slip on the sidewalk, a fall down the stairs, or a common sports injury can happen at any time. And beyond the injury, the cost to pay for an accident can be very painful.

Even if your health plan covers 100% of the accident, accident insurance benefits are still paid to you. You can decide how best to use these funds – for medical expenses such as treatment or medication, or to supplement lost work and other bills. This flexibility is what makes accident insurance unique.

Medical expenses are one of the most common financial difficulties for people every year. Accidents are no exception to this expense: People visit emergency rooms more than 30 million times each year to treat various types of injuries. In addition to covering medical expenses, our injuries can put us at risk of losing our jobs, which adds pressure to pay our mortgages, utility bills, and prepare meals for our families.

The average deductible for individual insurance plans is around $1,600 with the maximum out-of-pocket amount reaching over $8,000. This is where an accident policy can help us cover the medical and non-medical expenses that usually accompany an accident. Using an accident policy to help cover medical expenses is a great way to pay for expensive medical bills while avoiding going into debt to pay for them. This coverage can be a huge relief during times of financial stress for us and our families.

Types of Accident Insurance

One of the most popular and most useful types of supplementary health insurance is accident insurance. But accident policies themselves come in several types, including these three:

1. Death & Disability

Accidental death and disability insurance is one of the key types of accident insurance. It consists of an arrangement whereby premiums are paid to provide benefits in the event of death or disability of the insured due to a covered type of accident.

These policies are relatively inexpensive, and the benefits they provide apply on top of any life insurance benefits our loved ones may receive if we die. This doubling of death benefits is known as “double indemnity” in insurance speak.

However, be aware that deaths caused by suicide, war, illness, or old age are not covered, and insurance companies may also have other exclusions. There is also an upper limit to the total benefits we can receive for a dismemberment injury – and we receive more compensation for more “catastrophic dismemberments” than “basic dismemberments”.

2. General Accident Insurance

Not all accident insurance policies are limited to events involving dismemberment or death of the policyholder. There are policies that give us a cash sum like the We Care policy from  TransTRACK, or sometimes a set amount of payments or payments over several years, in the event of a covered accident.

We can also add passengers to the policy, such as for ambulance services and hospital stays due to a covered accident. This type of insurance can cover everything from a sprained ankle to permanent paralysis – depending on the terms of our policy and the cause of the injury.

We’ll want an experienced insurance agent to help us understand exactly how much benefit we’ll get for different types of accidents and injuries. Make sure we understand the exclusions and the process of filing claims and receiving payouts before we sign up!

3. Disability Insurance

Another common type of insurance that is essentially a form of accident insurance is disability insurance, which is often provided in the workplace by employers. But if you are self-employed, you may want to purchase a policy yourself.

The standard here is that if an accidental workplace injury prevents us from continuing to work, then the injury is usually covered. we will receive benefit payments month by month or week by week, depending on our policy, for a set period of time or as long as the disability continues.

Many policies replace a percentage of our lost income, such as 60%. As such, we still need regular health insurance and, possibly, another type of insurance or a new source of income to deal with long-term or permanent disability. However, if it is a relatively short-term problem, then disability insurance can help us get through it without having to deplete our savings or take out loans to help us.

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Benefits of Accident Insurance

Accidents can happen at any time without any warning, and can sometimes cause serious damage. Such unwanted incidents can have a significant impact on our finances; not only is the treatment expensive, but if we suffer any form of disability, it can affect our earning potential. To protect ourselves and our families from such situations, it is imperative to purchase a personal accident insurance policy.

Personal accident insurance is useful to provide financial assistance to us and our family in the event of an accident resulting in death, bodily injury, temporary total disability, permanent total disability and permanent partial disability. In the event of death, the insurer will pay 100% compensation (equal to the Sum Assured) to the nominee. Also, insurance companies offer compensation for accidental disabilities such as loss of speech, limbs and eyes.

Accident Insurance Costs

Well, to minimize accidents in driving, you can use a variety of products from TransTRACK which are used for accident prevention efforts such as the driver behavior monitoring feature which will have an alarm if the driver is drowsy, increased utility and fleet security, panic calls, vehicle maintenance control so that unwanted accidents do not occur if there are vehicle engine problems, and other features.

In fact, TransTRACK has We Care TransTRACK accident insurance for users of TransTRACK products who experience accidents. TransTRACK itself will provide added value for its customers in the form of accident compensation worth IDR 50 million per person in the event of death or permanent disability, as well as medical compensation worth IDR 5 million per person per incident.

Insurance has become an obligation for everyone to be able to minimize the cost of expenses when an accident, illness, or death occurs. For this reason, it is necessary for us to start registering in insurance immediately. You can also purchase  TransTRACK products to enjoy its best features and get We Care TransTRACK accident insurance!