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No one insurance policy is going to cover you against all medical risks and the impacts of a serious accident or illness. The best strategy, therefore, is to combine several key types of insurance so that one type can fill in the "gaps" left by the other(s).
A smart "threesome" in the insurance world consists of health insurance, disability insurance, and accident insurance. Below, we'll look at the role of each of these three types of insurance and how they can effectively complement each other to give you the fullest possible coverage.
What Health Insurance Does And Does Not Cover
Your "primary" insurance policy is normally an ACA-compliant health insurance plan for the whole family. After the deductible is met, you pay only a fraction of total health expenses instead of the full amount. Given the high cost of medical care these days, it's hard to overstate how important it is to find your best policy and enroll in time each year.
Only medically necessary procedures are going to be covered, and dental care is only included for children in most cases. Preexisting conditions are covered in accordance with federal law, and you have the right to renew your policy each year.
Regular health insurance takes care of the lion's share of medical expenses, but not everything is covered. That's why accident insurance exists - which we'll look at next!
What Does Accident Insurance Cover?
That ambulance ride to/from the hospital may not be covered by your health insurance policy. Blood transfusions, radiology bills, blood transfusions, physical rehab therapy, time spent at extended care facilities, and home care services all are often uncovered by your health plan.
These and other exclusions or "non-inclusions" can cost a lot - especially when you have to pay out of pocket for 100% of such expenses. It's ironic when you have great health insurance and yet are sunk in debt due to excessive medical bills. Accident insurance helps to prevent that unpleasant scenario!
Also, since accident insurance usually pays out fast - often in one or several lump-sum payments, it assists with cash flow issues caused by an accident. For covered accidents, you get cash in hand up to limits of the policy for that particular type and severity of the accidental injury.
You can use this money any way you like - no questions asked. You can use it to buy groceries, pay the mortgage or car payment, or pay the deductible, copay, or coinsurance on your health insurance.
Where Does Disability Insurance Fit In?
Disability insurance is mandated by state law to be bought by employers to cover their employees against possible on the job accidents. There are many legal rules and processes involved in collecting on a disability claim, and only accidents that prevent you from continuing to perform your job as usual count.
This is an important plank in your overall insurance protection plan - but not one you have to pay for yourself. However, consider how accident insurance can complement disability insurance.
First of all, accident insurance may pay out before you receive your first disability payment. That solves cash flow issues in the short term.
Second, accident insurance is not limited in coverage to accidents that affect your work ability, so you can collect on accidents not even covered by disability insurance in some cases.
Third, if the accident did not occur while you were at work or performing duties for your employer, disability coverage won't apply but accident insurance will.
To learn more about accident insurance and how it can complement other insurance types, contact Summerlin Benefits Consulting today!