What is voluntary accident insurance?
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You may be surprised to learn that one of the most common causes of accident insurance claims is tripping over a dog.1
Unfortunately, many accidents — including those involving a pet — may result in unexpected costs, ranging from co-pays and deductibles to ambulance bills and income lost during hospital stays. Voluntary accident insurance refers to accident insurance, which you can get through work if your employer offers it as a benefit. It is referred to as voluntary because it is a benefit you as an employee must pay for yourself rather than a benefit your employer contributes to the premium. Accident insurance can provide extra financial protection with payments directly to you for a qualifying event. And because the fixed benefit payments come directly to you, you can use them to cover accident-related expenses. While accident insurance may sometimes be purchased directly from an insurance company or agent, this coverage is most commonly purchased as part of a voluntary (employee-paid) group accident insurance plan at work, which many employers offer in their benefits packages.
This article can help you decide if voluntary accident insurance is something that you should consider by providing answers to key questions, including:
What does voluntary accident insurance cover?
What are the benefits of signing up for coverage?
How can you use benefit payments?
What voluntary accident insurance covers
Accident insurance isn’t medical coverage. Instead, it’s a type of supplemental health insurance coverage that provides financial support by paying a fixed benefit payment directly to you if you’re injured in a covered accident — and you can decide how to use that payment for accident-related expenses.
Voluntary accident insurance covers accidents at home, while commuting, on the pickleball court, or virtually anywhere. Whether it's a fall from a stepstool, while hanging a picture, or a spill down the stairs, these policies are designed to help you handle some of the expenses resulting from your injuries. And may even help cover the diagnostics, like X-rays, to see the extent of those injuries. While policies vary, they typically cover a wide range of injuries, including, but are not limited to:
broken bones
severe burns
concussions
joint injuries (and replacements)
eye injuries
lacerations
sprains
In addition, some policies offer benefits for especially serious accidents leading to limb loss, paralysis, blindness, or death, or offer benefits for related issues like ambulance service. But it's important to note that coverage differs from policy to policy, so be sure to read through the details of what your employer offers before signing up.
Key benefits of having coverage
Generally speaking, accident insurance provides a fixed benefit payment for covered injuries. This benefit is paid directly to you, – not your healthcare provider – and you can choose how best to use the funds depending on your financial needs. People may use their benefit payments to help cover:
diagnostics like x-rays
co-pays and deductibles
ambulance services*
transportation expenses**
physical therapy sessions
Other things to know about voluntary accident insurance
Voluntary accident insurance from work is a type of group insurance. That means that even if you are paying for the benefit, the rates are generally cost-effective because a single policy covers multiple people, instead of an individual policy written for one person. Other important facts to consider include:
Approval is typically guaranteed without medical exams or extensive health questions, allowing for easy enrollment during open periods. However, some limitations or waiting periods may apply for pre-existing conditions or certain types of accidents.
Many employers offer automatic payroll deductions, so you won’t have to worry about getting a monthly bill for your premium payment.
If you have children, you may be able to cover them for injuries sustained while participating in organized sports programs. It’s important to note that each year, 775,000 children under the age of 14 are treated in emergency rooms for sports-related injuries.2
How to get voluntary accident coverage benefits at work
If you're an employee, ask your HR manager what supplemental health benefits are available, when open enrollment is, or how to sign up. If you're an employer, talk to a Guardian broker to learn more about your group benefits options and how to find the right mix for your employees and your business.