A Guide to Accident Insurance
Originally posted on https://www.annuityexpertadvice.com/accident-insurance/
What is Accident Insurance?
Accident insurance is a type of disability insurance coverage a worker can purchase to protect their paycheck if they get injured on the job including Accidental Death and Dismemberment, loss of sight, speech, and hearing.
Some companies don’t provide the option to purchase traditional disability insurance, and some workers can’t be insured. This is where the accident insurance policy comes into play.
The neat thing about this accident insurance product is everyone is guaranteed to get coverage despite health issues (occupational exclusions below), and the process takes about 10 minutes from start to finish.
Also Known As
- Accident Only Disability Insurance
- Guaranteed Issue Disability Insurance
- Accidental Disability Insurance
- Accidental Death and Disability Insurance
- Accidental and Disability Insurance
- Injury Insurance
- Accident Income Replacement Benefit
- Accidental Temporary Total Disability Insurance
Who is Accident Insurance Perfect For?
- Anyone Between the Ages of 18 – 70.
- Blue Collar Workers
- Self-Employed Workers
- Non-Citizens Permanent Residents
- Sole Proprietors
- Seniors, Ages 65 – 70
How Does Accident Insurance Work?
You purchase your insurance plan for a fixed price, and you pay that premium every month you want to be covered.
If you get injured on the job due to an accident, you will file a claim, wait the elimination period, and then start receiving the supplemental income (varies by plan) until you get well enough to return to work or a maximum of 52 weeks whichever comes first.
Who is the Accident Insurance Company
Federal Insurance Company (a Chubb Company). Chubb Insurance is the world’s largest publicly traded property and casualty insurance company.
Accidental Death And Dismemberment Insurance
AD&D is included with this disability insurance plan. Basically, if the insured is dismembered from the accident, the insured will receive the AD&D life insurance benefit which is currently $5,000. Dismemberment includes:
- Loss of Speech
- Loss of Hearing
- Loss of Hand or Foot
- Loss of Sight
The insured’s beneficiary will receive the $5,000 lump sum AD&D benefit if insured’s death was directly caused by the accident.
How Much Does Accident Insurance Cost?
Guaranteed Issue Accident Insurance plans starts around $18 a month on the low end and $40 a month on the high end for a single person.
What is excluded in this accident insurance plan?
1) an Insured Person being in, entering, or exiting any aircraft:
a) owned, leased or operated by the Policyholder or on the Policyholder’s behalf; or
b) operated by an employee of the Policyholder on the Policyholder’s behalf;
2) an Insured Person riding as a passenger in, entering, or exiting any aircraft while acting or training as a pilot or crew member. (This exclusion does not apply to passengers who temporarily perform pilot or crew functions in a life threatening emergency.);
3) an Insured Person’s emotional trauma, mental or physical illness, disease, pregnancy, childbirth or miscarriage, bacterial or viral infection, bodily malfunctions or medical or surgical treatment thereof. (This exclusion does not apply to an Insured Person’s bacterial infection caused by an Accident or by Accidental consumption of a substance contaminated by bacteria.);
4) an Insured Person’s commission or attempted commission of any illegal act, including but not limited to any felony;
5) any occurrence while an Insured Person is incarcerated after conviction;
6) an Insured Person being intoxicated, at the time of an Accident. Intoxication is defined by the laws of the jurisdiction where such Accident occurs;
7) an Insured Person being under the influence of any narcotic or other controlled substance at the time of an Accident. (This exclusion does not apply if any narcotic or other controlled substance is taken and used as prescribed by a Physician.);
8) an Insured Person being engaged in or participating in a motorized vehicular race or speed contest;
9) an Insured Person participating in military action while in active military service with the armed forces of any country or established international authority. (This exclusion does not apply to the first 60 consecutive days of active military service with the armed forces of any country or established international authority.);
10) an Insured Person traveling or flying on any aircraft engaged in Specialized Aviation Activities;
11) an Insured Person’s suicide, or attempted suicide or intentionally self-inflicted injury;
12) a declared or undeclared War.
Accident Insurance FAQ
Do I have to take a medical exam?
For guaranteed issue accident insurance, you do not.
Simply pick your plan online, purchase, and you are covered.
There are no drug tests, prescription drug or medical history either.
Do I have to be a U.S. resident to purchase accident insurance?
Nope. You just need to be a Permanent Resident with a Tax ID#.
Who is covered?
You only, or if the Joint option is selected, you and your spouse or domestic partner are covered.
For the purpose of this plan, Domestic Partner is defined as:
1) is at least 18 years of age and competent to enter into a contract;
2) is not related to the Primary Insured Person by blood;
3) has exclusively lived with the Primary Insured Person for at least twelve (12) months prior to the date of enrollment;
4) is not legally married or separated; and
5) as of the date of enrollment, has with the Primary Insured Person at least two (2) of the following financial arrangements:
a) a joint mortgage or lease;
b) a joint bank account;
c) joint title to or ownership of a motor vehicle or status as a joint lessee on a motor vehicle lease; or
d) a joint credit card account with a financial institution.
Neither the Primary Insured Person nor the Domestic Partner can be married to, nor be in a civil union with anyone else.
Will this plan cover me for an injury in a foreign country?
Yes. Coverage applies worldwide.
What is the earliest I can have my membership become effective?
The earliest effective date you can get is the 1st of next month.
How do I file a claim?
Claims are simple. Call the toll free number listed in your membership kit.
The claims staff will take your information, create a file for you and get a claim form out to you in the mail.
I already have disability insurance. I am covered by worker’s compensation and my employer has a salary continuation plan. How does accident insurance deal with that?
This plan pays out regardless to any other income replacement plan you have.
Do I have to prove what my income is when I apply? Or when I file a claim?
It depends on which plan you choose. If you choose a $250 or $500 per week fixed benefit we will not ask for any type of income verification.
For the up to $750 and up to $1000 benefits you will be asked for income verification at the time of claim.
Is there a time limit for claims?
Yes. You must file your initial claim with the WBA carrier within 60 days of the accidental injury, or as soon thereafter as is reasonably possible.
Who gets the accident insurance income?
Claim payments will be made directly to you.
Accidental Death benefits are paid to the beneficiary selected.
If no beneficiary has been selected, the benefit will be paid to the first surviving party in the following order:
a) the Insured Person’s spouse or domestic partner;
b) in equal shares to the Insured Person’s children;
c) in equal shares to the Insured Person’s parents;
d) in equal shares to the Insured Person’s brothers and sisters;
e) the Insured Person’s estate.
All other benefits will be paid to the Insured Person or the Insured Person’s designee, or unless otherwise noted.