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Group Accident Insurance Plans

Accidental Insurance Plans — Accidental Plans, Coverage & Quotes

Accident insurance is a type of life insurance, which provides a lump sum to beneficiaries after the death of an employee. Accident insurance policies are different because they have higher payouts, relative to their cost. They can afford to do that because the accident insurance company only pays off a policy in the relatively rare event that the death is caused by an accident (e.g. a car or plane crash). Accident insurance plans make a bet that your employees will either outlive the policy or pass away due to medical events not covered; this way, they profit from years of premiums paid by an employer without having to fulfill claims. Accidental insurance can be bought by itself, or as a rider attached to a life insurance or group health insurance policy.

The two major types of accident insurance are Accidental Death and Dismemberment Insurance (also known as AD&D) and Accidental Death Insurance. AD&D insurance pays out the entire value of the policy upon a qualifying death, or a portion of that amount in the event of a severe injury. Such an injury usually entails dismemberment, which often makes employees unable to work. This insurance can be especially valuable to a small business, which will be especially hurt by the loss of an employee. Losing the sight from one eye or one limb, hand, or foot provides a partial payout–usually 50%. If an employee lose two or more limbs or become completely blind, the full amount is paid out. In those instances, he or she will require extensive health care for the remainder of your life, and may be unable to return to the same type of work they did prior to the accident. Accidental death and dismemberment insurance will help provide for your care.

Accidental death insurance is more limited than AD&D; it only covers cases in which the accident is fatal. The payouts tend to be several times larger than what a standard life insurance policy provides, because of the statistics that show that most people will not die from an accident. This is due to the fact that, unlike standard group life insurance, accidental death insurance policies take into account the extenuating circumstances that may cause an employee’s unexpected death to wreak greater financial havoc on your business. Affordable group accidental death insurance is made possible both through buying coverage in bulk and spreading the policy risk among their workforce.

You must be sure of the exact coverage offered by a policy when when buying accident insurance. Most companies will not pay out an accidental insurance claim involving physical or mental illness, drug overdose, or surgical error. Some plans are more comprehensive than others, although more stringent requirements may result in cheaper accident insurance premiums. Accidental death and dismemberment policies are also more expensive than accidental death plans, since the coverage is expanded. However, you are able to find accidental insurance quotes cheaper than the same coverage would be with standard life insurance, because statistics show that most people die from medical illnesses. The trade-off is that you run the risk of the policy not paying out at all, if an employee die under non-qualifying circumstances.

VitalOne has licensed group insurance agents here help you compare business accident insurance plans. They can help you determine whether an accidental death or accidental death and dismemberment policy is the best choice for you as an employer providing insurance.

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