Among all other types of insurances, Personal Accident Insurance takes a special place due to several reasons. Life is an unpredictable thing, and, if you have a family and members who are dependent on you, it’s vital to make sure you will stay in position to cover all expenses whatever the life’s circumstances.
What if you, having a stable income and a good job, have suddenly got ill or temporarily disabled? Of course, you have your Health Insurance which cover medical expenses, but who will pay for expenses which are not covered by the policy while you are not able to earn money for now (and you don’t know how long your disability will last)?
This is the area where Personal Accident Insurance is in charge. Many mistakenly take Life and Health insurance as a protection from situations like this, but only personal accident insurance protects you financially if you are having a serious accident or life-threatening injury. It’s an annual policy, offered by almost all insurance companies over the US and the concept of this type of insurance is the same: you pay regular premiums for financial protection in case of an accident.
You can choose the term of the policy and the size of the compensation (based on your monthly income and life’s expenses). PA (Personal Accident) could be taken either for you personally and for the group of your family members.
What does the Personal Accident Insurance cover?
Accidents happen to everyone, but not all types of Health insurance (which you supposedly have) cover accidental injuries and traumas.
- Permanent disablement
A holder gets compensation in a case of officially proven disablement (as a result of an external accident or violence) which will last a lifetime, without a chance for a recovery.
- Temporary disablement (partial or total)
A holder gets compensation in a case of partial disablement. The terms “partial” and “temporary” should be defined in a policy in detail.
- Corrective surgery
If in a case of an accident, a policyholder will need a corrective surgery (it doesn’t include aesthetically surgery), the PA Insurance covers such expenses.
- Hospitalization benefits
All expenses related to hospitalization are covered.
- Medical expenses for emergency treatment
If in a case of injury a policyholder appears to be in need of an urgent emergency treatment and reanimation procedures, the expenses are also covered.
What are the differences between Life, Health, and Personal Accident Insurances?
A holder of a Health insurance is also protected by the policy in a case of a permanent or temporary loss of health, but there is a clear difference between health and PA types of insurances.
Health Insurance covers all variety of issues related to health, including viral, infectious, autoimmune and other types of diseases which occur to every one of us regularly. You just pay for your policy and your medical expenses (whatever the types of) are partially covered (depending on your policy type).
Personal accident Insurance covers only cases, related to external accidents, injuries caused by violence, accidents resulted from vehicles collision, natural phenomenon, etc.
Often such accidents require immediate and intense (and therefore expensive) medical care. Regular Health or Life Insurance policies do not cover that or cover it not fully enough to grant you the proper help. Health Insurance normally includes all types of medical treatments a certain doctor or hospital provides (dental services and plastic surgery are excluded).
Personal Accident Insurance covers specific, defined in the policy conditions and injuries, taken only due to external accidents.
Health Insurance also covers the cost of prescription drugs and all types of medical bills, while the coverage is directed to the medical services provider.
Personal Accident Insurance pays out the money directly to the policyholder to let them choose the treatment, hospitals, and type of care by themselves.
In short: Health insurance has way broader medical coverage, while PA Insurance covers accidents specifically.
Pros, cons, and pitfalls of Personal Accident Insurance
The advantage of Personal Accident Insurance is plain and serious: accidents happen all the time and are always unexpected and brings a variety of troubles (social, psychological, financial). Accidents are never predicted but its consequences may affect you during all following life. Having PA Insurance is a wise and well-reasoned choice in terms of protecting you and your family from troubling financial consequences of accidents.
Cons are also obvious: this policy is very specific, and, unlike health insurance, covers only externally invoked accidents and expenses related to that. All other health issues, whatever serious, are not covered.
It is important to realize the PA insurance can not be a substitute for a Life or Health insurance, as PA has too many “buts” and restrictions. For example: if the person dies or becomes disabled as a result of unsuccessful surgery – the policy does not cover that. If the patient has mental illness or a chronic bacterial infection which caused a deadly seizure – the person or their family will not receive any compensation under the PA policy.
It should be said that PA Insurance could hardly be considered an investment vehicle, as accidents defined in the policy happen either rarely or may not happen at all. Anyway, it is always better to stay protected, rather than rely on your good luck and one day find yourself lost and financially drained if an accident finally happens.
Top USA Insurance companies offering Personal Accident Insurance
Almost every insurance company in the USA provides individuals with Personal Accident Insurance, but we have picked the TOP-3 which offer really good and flexible terms.
The company is a member of Fortune 500, with a more than 50 million clients worldwide. It specializes precisely in accidents and injuries insurance. The company pays compensation quickly and directly to a policyholder.
American General Life is an Insurance company with nearly 100 years of experience in a sphere of health and accidents insurance. It offers diverse insurance programs with excellent service and guaranteed payments. Twelve million customers speak loud for the quality of AIG’s services.
The company is one of the biggest in the USA insurance providers, with Personal Accident Insurance option amongst its offers. Along with PA, Atlas provides millions of clients with the broad variety of insurance products.