Accident insurance pays benefits to help with the costs of an unexpected injury, such as a fracture, dislocation, cut or burn. Nearly 40 million Americans seek medical help for injuries every year1 — and health insurance may not be enough to cover the costs for today’s financially fragile workers, says Steve Hesler, assistant vice president in product development at Colonial Life.
“The continuing trend toward high-deductible health plans is creating a big gap between employees’ out-of-pocket health care costs and what they have on hand in savings for emergencies,” Hesler says.
The average major medical insurance deductible for high-deductible plans is $5,000.2 Yet nearly half of Americans would have trouble coming up with just $400 in an emergency.3
Colonial Life’s new individual accident insurance plan pays higher benefits than previous plans at competitive, affordable prices. Employers can tailor the plan they offer to match the needs of their employee population by selecting from three optional benefits:
- An active lifestyles option that boosts benefits by 20 percent.
- A well-being assistance benefit that helps pay for routine preventive care.
- A gunshot wound benefit for expenses from a nonfatal gunshot wound.
Employees can further customize their coverage by choosing from optional riders for disability income for accident or accident and sickness, critical illness, or sickness hospitalization.
Workers who choose Colonial Life’s new individual accident plan also have access to new benefits including telemedicine and treatment for post-traumatic stress disorder from a covered accident. Employees can select coverage for themselves only, or include family members. Coverage is guaranteed without answering health questions, and employees can keep their coverage if they change jobs or retire, as long as they continue paying premiums. The plan also is compatible with health savings accounts, typically offered alongside high-deductible health plans.
Colonial Life’s individual accident plan is indemnity-based, paying a set amount based on the injury and treatment the insured receives. Benefits are paid directly to the insured and aren’t reduced by other insurance. Unlike Workers’ Compensation, it can cover injuries off the job as well as at work. Because the plan is voluntary, employees select and pay for the coverage, eliminating cost to the employer.
“Employers want to provide competitive benefits plans for their workers, but controlling costs is a major concern,” Hesler says. “Offering voluntary individual accident insurance allows them to expand their benefits package with an affordable solution.”
This is a limited policy. Coverage has exclusions and limitations that may affect benefits payable. This coverage isn’t available in all states. Plan design and options may vary by state.
1 National Safety Council, Injury Facts, 2016
2 Thebalance.com, Sept. 9, 2016
3 The Atlantic Magazine, May 2016
About Colonial Life
Colonial Life & Accident Insurance Company is a market leader in providing financial protection benefits through the workplace, including disability, life, accident, dental, cancer, critical illness and hospital confinement indemnity insurance. The company’s benefit services and education, innovative enrollment technology and personal service support 85,000 businesses and organizations, representing 3.7 million of America’s workers and their families. For more information visit www.coloniallife.com or connect with the company at www.facebook.com/coloniallifebenefits, www.twitter.com/coloniallife and www.linkedin.com/company/colonial-life. Colonial Life is a registered trademark and marketing brand of Colonial Life & Accident Insurance Company.