Accidental Insurance.

Accidental insurance provides coverage for things that happen to us unexpectedly as one can imagine. The coverage that is offered goes beyond simply falling down and breaking a leg. There are currently many additional riders that add to the cash payout that is available for individuals who do need to use the policy. There is currently an active lifestyle rider that provides a 20% larger cash payout over the core accident policy itself.

The real value is that with lower deductibles, and copays the policies are very accessible to people who need to use them. The utility comes in when we find ourselves in a hospital potentially facing thousands of dollars in medical debt. The cash payouts have also been used to help meet the ever-rising deductibles of core-major medical insurance.

When employers offer accidental insurance to their employees as a type of employer-based voluntary benefit the employees have the protection of an accident policy that provides a pretax purchase which can lower the amount of FICA matching taxes that employers have to pay. An example is when an employee is hypothetically paid $100 in Gross-Pay (pre-tax). The amount that an employer would have to pay in matching taxes of the 7.62% is $7.62. If the same employee purchases $50 worth of insurance products with their $100 gross pay the amount that they would have left over to be taxed would be $50 because there would be half remaining. 7.62% of $50 is $3.34. The numbers that I used that is also the savings per pay cycle in this example. Most companies have more than one employee, and the savings would be on every employee who purchased products.

A real benefit to an accident plan is that the payouts can sometimes be matched to the amount that is required to access the core-major medical plan. An example of this would be if a core-major medical plan had a deductible of $3,000 we could find an accident policy that had a similar payout. The cash could then be used to pay for hospital bills that would fulfill the deductible requirements of core-major medical. The real advantage is that the covered person has the assurance they are going to miss a leading cause of medical bankruptcy. Bankruptcies happen when people work their entire year trying to pay down the deductible. Quite often people are going to work still partially injured trying to make enough to pay the deductibles down. When the covered person does not quite pay down enough, and there is a remainder of core-major medical does not care they reset them back to zero, and start over in paying down the deductible. This really exemplifies how the cash payouts from an accident policy when matched to the amount of the deductible can save people from hard times.