Do Your Employees Need Accident Insurance?

When employees consider whether to add accident insurance, some may think it’s not necessary, believing that their health insurance provides enough protection. Others may be open to it but don’t know where to start.

It’s important to let your employees know that accident insurance can help them survive the financial impact of unexpected medical events, often at a low monthly cost.

What Is Accident Insurance?

Accident insurance is a type of voluntary insurance policy designed to supplement a standard health insurance plan. By offering lump-sum payments for designated events, such as a broken bone or ambulance ride, these plans provide policyholders with a direct source of cash they can use for anything — from groceries and rent to deductibles, prescriptions, and copays.

Is Accident Insurance Worth It?

Voluntary plans such as accident insurance can be an attractive option for a wide range of people, including:

  • Families — Nearly 30 million children go to the ER each year, according to the American Academy of Pediatrics. With accident coverage, families receive peace of mind and extra financial protection for those common childhood injuries.
  • Accident-prone individuals — Accidents happen to adults, too. If employees are prone to falls or other unintentional injuries, a supplemental accident policy can remove added financial stress so they can focus on recovering.
  • High-deductible policyholders — While the average deductible is $1,655, some deductibles are thousands more. Either way, that’s more than many Americans can afford to spend on an unexpected expense. That’s where a supplemental payout may help: For a medium-level accident plan, a minor injury such as an ankle fracture* could pay as much as $1,800.
  • People in medical debt — Nearly a third of Americans have medical debt, with many owing $10,000 or more, according to a CNBC report. If employees are paying old loans, new debt on top of existing balances worsen financial and emotional hardships.

What Level Coverage is Best?

Employees should assess their finances to determine which coverage level fits best. Typically, plans offer coverage tiers that vary by premium and benefit amounts.

  • Lower levels are best for those who want a more budget-friendly monthly payment. While the premiums are more affordable, the cash payouts are less compared with higher tiers.
  • Middle levels offer a good balance of affordability and payouts.
  • High levels provide the highest payouts but come with higher premiums. They may be attractive to those who can afford to pay more on a monthly basis for the best protection.

To see how these levels pay out, look at a hospital admission as an example. A low-level plan may offer a $500 cash benefit with a less-expensive premium, while a middle- and high-level plan may pay $1,000 and $1,500, respectively, but require a higher monthly payment.

Communicating the Importance of Coverage

Accidents happen, even to careful people. If your employees take every chance to protect themselves from financial risk, they will be prepared to withstand the financial hurt of medical emergencies. Accident coverage can do just that — protecting them from the unexpected expenses from sports injuries to car accidents.

*Anthem Supplemental Health Accident Coverage Brochure, Accident benefits overview, 2020.

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