HSA, HRA, FSA

What is Voluntary Accident Insurance?

Life can be unpredictable which is why many employers offer voluntary benefits including accident insurance. When an accidental injury occurs, accident insurance provides financial protection for covered employees. Some plans include accidental death and dismemberment (AD&D) as an add-on to accident insurance; however, it is typically offered as a separate plan.

When accident insurance is offered through an employer, it is often offered at a reduced premium rate, which can be paid through automatic payroll deductions. It is used on top of an employee’s regular health insurance. Therefore, when an accident insurance payment is received, an employee may choose where to allocate the money. Most coverage will pay a one-time lump sum, and after receiving it, employees can use those funds however they wish, whether it be on medical bills, groceries, childcare, etc.

What Accident Insurance Covers

There are a variety of instances that accident insurance will cover, depending on the policy. It typically covers:

  • Injuries. If an employee or their covered household member suffers a fracture, concussion, cut burn, coma, broken tooth, torn knee cartilage, ruptured disc, or paralysis, the insurance will deliver payment for any of these occurrences.
  • Medical services and treatments. Payments cover ground and air ambulances, emergency and non-emergency care, and hospital admission, confinement, and inpatient rehab. Accident insurance also covers the intensive care units, inpatient and outpatient surgeries, physician follow-up, therapy, and medical testing.
  • Housing and travel costs. Families that have housing and travel expenses due to follow-up care from an accident are covered.

Please note that not all accident insurance policies are the same. Those interested in accident insurance should review what their employer-offered policy covers.

What Accident Insurance Does Not Cover

While accident insurance covers many instances of injury, there are several occurrences in which the insurance will not pay. Injuries that occur due to an intentional self-inflicted wound or a suicide, acts of declared or undeclared war, active military duty, and natural disaster are not covered. Also, utilizing non-prescription, controlled substances, and consuming alcohol will prevent coverage. Lastly, those who participate in semi-professional or professional organized sports or are involved in illegal activities will not receive payment from their accident insurance.

Voluntary benefits, like accident insurance, are a great way for employees to add a layer of financial protection for unexpected expenses.  If you have any questions, please contact your dedicated Creative Benefits, Inc. team member.