You’ve probably seen the commercials – with spokespeople ranging from cute ducks to serious-faced actors – encouraging you to buy accident insurance. You can skip the commercials, but don’t skip insuring yourself against the possibility of an accident. Here’s why:
- Accident insurance provides peace of mind. It can help you pay your bills while you have little or no income, and can be a lifesaver if you’re severely injured and unlikely to work again.
- Income from accident insurance is tax-free. Accident insurance is considered similar to a life insurance policy, so federal law protects payouts from income tax.
- If you don’t have health insurance, accident insurance can pay for hospital and medical expenses. It pays out until you recover or until benefits are maxed out, whichever comes first.
- If you do have health insurance, accident insurance provides additional benefits, even when your health insurance pays for some or all of your expenses.
- If you’re injured and unable to pay tuition, accident insurance may pay a certain amount towards your kids’ education if they’re attending or about to enter college.
- Nearly all occupations are eligible for coverage, although there are some limitations and exclusions. If your occupation is high risk, providing you’re eligible, accident insurance is a must.
Policies vary, so discuss options with your insurance professional; the small premium you’ll pay is well worth it.