Accident Insurance Benefits You Need To Know

Accident insurance is a type of insurance specifically designed to protect you in the event of an accident, covering the cost of death or injury. Unlike other types of insurance, accident insurance will not cover health care costs associated with illness, or pay a death benefit if you die from natural causes.

Accident insurance provides a fixed payment amount that can complement your existing health or life insurance coverage. This type of insurance is an affordable option with easy access and application.

What is Accident Insurance?

For example, If Joni dies in a car accident, his $500 million accident insurance policy will pay his heirs accordingly. However, in the event of death due to other causes, such as cancer, the policy will not provide payment.

Accident insurance does not require the same extensive underwriting process as life insurance. This means one can get coverage from a group plan or purchase a private policy without undergoing a medical exam.

If the insurance policyholder is the one paying the premium, the payments from the accident insurance policy are tax-free. Likewise, payments from insurance policies managed through employers are not subject to tax if premiums are paid in rupiah after tax.

What Accident Insurance Covers?

Accident insurance provides financial coverage in the event of accidental death, in addition to a wide range of injuries which can potentially include concussion, dislocation, cut, eye injury, broken bone, laceration, ruptured disc, severe burns, and/or torn knee cartilage. Please cross-check with the insurance agent where you registered to make sure what is covered.

What are the Benefits of Accident Insurance?

If you are incapacitated due to a covered accident and are unable to work, accident insurance can provide you with a financial replacement for your lost income. In addition, accident insurance can cover additional costs such as alternative medicine, ambulance services, bereavement and trauma counseling, emergency room services, hospitalization costs, inpatient rehabilitation, medical equipment, medical tests, and some types of surgery.

In addition, when an insured person dies due to an accident that is covered, the heirs will be given a one-time payment. In addition, some insurance companies may even offer beneficiaries the option of receiving monthly payments.

Things That Become Accident Insurance Exceptions

Accident insurance, like all forms of insurance, has its exceptions. For example, if an insured person is injured while drunk or while committing a crime, the policy may not cover it. In addition, injuries caused by pre-existing illnesses may also not be covered.

Additional exceptions may include death or injury caused or suffered as a result of participating in war, learning to fly an airplane, driving without a valid license, engaging in hazardous activities such as rock climbing, self-inflicted suicide or intentional injury, and non-prescription drug or chemical overdoses by medical professionals.

In the event of death due to loss incurred, the accident insurance policy will provide the beneficiary with 100% of the principal amount – for example, if someone has a 500 million accident insurance policy and dies in a car accident, the beneficiary will receive 500 million.

However, for other types of injuries, the percentage of principal amount paid is reduced; for example, losing a hand can result in a 50% payout, while losing the index finger can result in a 25% payout.

Unless explicitly excluded, you are still entitled to payments from your accident insurance regardless of tort. For example, if the insured dies in a car accident while driving under the influence, the insurance company will likely reject the claim.