Accident insurance is a type of supplemental health care insurance policy that pays you or your loved ones, unless otherwise assigned, if you are injured or pass away due to an accident. These policies tend to be affordable, offering away to help protect not only yourself but also your family.
Below, we’ll explore the benefits of accident insurance in more detail and dive into a few reasons to consider investing in a policy.
Benefits of Accident Insurance
When considering how much is supplemental insurance, it’s essential to weigh these benefits:
1. It Provides Financial Protection
Accident insurance’s biggest benefit is that it offers financial protection in the event of an accident. So, if an accident requires medical attention, accident insurance can help cover the costs. This financial protection can help keep your mind at ease.
2. It Offers Flexibility in Benefit Usage
Insurers pay out accident insurance benefits in lump sums. This gives you the full amount at once and allows you to use it on anything.
For example, let’s say you have enough health coverage and savings to cover medical bills comfortably. Aflac works by paying cash benefits regardless of your current plan. This gives you extra support and financial relief during these covered accidents.
3. It May Offer Tax Advantages
Accident insurance could potentially be a more tax-efficient way to help cover the costs of accidents and help with out-of-pocket expenses.
This is because payouts may not be considered taxable income. A nontaxable payout could provide you with more funds to handle expenses related to the accident.
On the other hand, if you sell assets to cover these costs, such as stocks and bonds you hold, you may owe taxes on those.
That said, tax rules can vary, so working with a tax advisor is recommended before trying to utilize any strategies.
Three Reasons to Consider Accident Insurance to Help Protect Your Family
Given the benefits of accident insurance, here are a few reasons to consider applying for a policy to help protect your family:
1. Prepare For the Unexpected
No one can see the future. Even if you do not pursue risky hobbies or have a safe or low-risk job, there’s still a small chance of something happening.
Accident insurance helps you prepare for unexpected events at an affordable rate. You can rest assured that if tragedy strikes, you have an extra layer of financial protection.
2. Supplement Existing Health Insurance Coverage
Traditional health insurance doesn’t always cover every cost associated with an injury. You may have gaps in coverage for injuries that require costlier or longer-term treatments. Health insurance may also exclude certain expenses indirectly associated with care and recovery.
Accident insurance helps supplement this coverage, helping ensure you can pay for expensive treatments without draining your savings or incurring significant debt.
3. Increase Security for Children
Children may be more prone to accidents, depending on their age. For example, younger children with less coordination may fall over. Another example would be if your child plays sports, which naturally creates risks of injuries.
Getting accident insurance for your child can help provide peace of mind since you’ll have the choice to get them the best care if they’re injured. Additionally, you may be able to take time off work if needed to be by their side while they recover.
Consider an Accident Insurance Policy
Buying accident insurance may be a proactive measure to help keep your family financially safe.
The flexibility and potential tax advantages of accident insurance make it a helpful way to prepare for unexpected accidents and help supplement existing health coverage. You can even get accident insurance for your children to help protect them as they grow up.
Adding an accident insurance policy to your financial picture is worth considering, depending on your budget and circumstances.
Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.
Aflac: 36000: In Delaware, Policies A36100DE—A36400DE, & A363OFDE. In Idaho, Policies A36100ID–A36400ID, & A363OFID. In Oklahoma, Policies A36100OK– A36400OK, & A363OFOK. In Virginia, Policies A36100VA – A36400VA, & A363OFVA. 37000: In Delaware, Policies A371AA & A371BA. In Idaho, Policy A37000ID. In Oklahoma, Policy A37000OK. In Virginia, Policies A371AAVA & A371BAVA. 38000: In Delaware, Policies A38100DE, A38200DE, A382OFDE, A38300DE. In Oklahoma, Policies A38100OK, A38200OK, A382OFOK, A38300OK.
Tier One: In Delaware, Policy T37000. In Idaho, Policies T37100IDR, T37200IDR, & T37300IDR. In Oklahoma, Policy T37000OK. In Virginia, Policies T37100VA, T37200VA, T37300VA, T37400VA, T37600VA. Not available in NY or NJ.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY, VA or VT. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions.
Aflac WWHQ | Tier One Insurance Company | 1932 Wynnton Road | Columbus, GA 31999
Z2500161 Exp. 4/26
