What Is Personal Accident Insurance?

With personal accident insurance, you can protect yourself or your loved ones financially in the event that you suffer an accident or disability. Several different types of personal accident policies are available.

Cash for Accidents

A number of policies will pay you cash if you have an injury. The cash is there to help you with any treatment costs as well as to cover other expenses. If you miss work because of an accident, this type of policy will provide money while you're out. You can use it to pay the rent, for groceries or for whatever else you may need.

Some policies provide cash for something as simple as having your back go out from trying to lift a heavy object. Other policies pay out only if you experience something quite serious, like the loss of a finger. In such a case, you will probably receive a few thousand dollars for your pain and suffering. Claims are commonly made against accident policies by people involved in auto accidents. If you are slightly injured by whiplash or anything else in a car crash, you can fill out the necessary paperwork to claim your money.

Accidental Death

Another common type of personal accident insurance is an accidental death policy. If you die from any type of accident, it will pay your beneficiaries a predetermined amount of money. This is similar to life insurance but does not cover as wide an array of circumstances. If you die from an illness or disease, you would not be covered by an accidental death policy. If you die in a car crash or fall, this type of policy would cover you. This is often used as a less expensive, limited alternative to life insurance, sometimes by healthy individuals who consider themselves at greater risk of dying soon of an accident than of a disease or other natural cause. 

Disability Insurance

If you are injured so severely that you cannot work anymore, disability insurance will pay you a monthly income. If you don't think this type of coverage is necessary because your employer will cover you, you might be surprised. Most employers are required to have only short-term disability coverage in the event of an accident on the job. Therefore, they may cover you for up to only 26 weeks. After the 26 weeks are up, you may qualify for benefits from the Social Security Administration; however, those benefits are often not enough to live on. Personal accident disability insurance will help you guarantee that you'll be taken care of.

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