Accident insurance, useful or not?

An accident insurance policy pays out a lump sum if you sustain physical injury due to an accident. Taking out this insurance can be a wise choice for various reasons. In this article, we will tell you what aspects are essential to consider.

The benefit of accident insurance

Accident insurance is a relatively unknown type of insurance that can definitely be useful. The insurance is often confused with health insurance or disability insurance. Accident insurance pays out a lump sum if you become permanently disabled or pass away as a result of an accident. This pay-out gives you and your family more financial flexibility when life can be challenging. For example, in the case of a nasty fall like Jack’s. Or if you, for example, lose part of your vision. You then have to make various adjustments, such as your housing situation and how you transport yourself from A to B if you can no longer drive.

Useful or not?

Whether it is helpful to take out accident insurance depends on your and your family’s financial situation. Are you just meagerly insured in case of disability? Then, it might be nice to receive a lump sum from the accident insurance on top of your relatively low new income.

If you have many savings or assets that you can freely spend, then taking out accident insurance may be less important.

The payout depends on the injury

You can choose the amount for which you take out the accident insurance. The insurance pays out the predetermined amount of money if you have an accident, depending on the severity of the injury and the insurance cover. The precise conditions can be found in the offer and the insurance policy.

Flexibility

A benefit of accident insurance is its flexibility. The payout can be used for medical costs not (fully) covered by your health insurance. Think of additional physiotherapy treatments or special therapy. Moreover, the money can be used to compensate for income loss should you temporarily be unable to work as a result of the injury. You can also use it to pay off debts or go on vacation.

Worldwide coverage

Another benefit of accident insurance is that it offers worldwide coverage. This means you are covered regardless of where the accident occurs. Whether at home, at work, while travelling, or when engaging in hobbies, you are covered everywhere and at all times.

We help you choose

Accident insurance can be an excellent addition to health insurance or disability insurance. Sometimes, you are already sufficiently insured, and it is not necessary to take it out. Our advisors are happy to help you find accident insurance with suitable conditions.

When is it wise to take out accident insurance?

Accident insurance can be a wise choice for various reasons. Accident insurance pays out a lump sum if someone sustains physical injury due to an accident. Accident insurance is often confused with other insurance, such as disability or health insurance. They are different insurances that can complement each other in terms of coverage.

With accident insurance, you receive a predetermined amount of money as a payout, depending on the severity of the injury. For example, imagine you lose your vision. You will then have to make various adjustments in your life, such as how you live and how you transport yourself from A to B.

Accident insurance can also help cover medical costs, such as hospital admissions, surgeries, rehabilitation, and therapy. Moreover, the money can be used to compensate for income loss should you temporarily be unable to work due to the injury. You can also use it to pay off debts or go on vacation.

An additional advantage of accident insurance is that it offers worldwide coverage. This means you are covered regardless of where the accident occurs. Whether at home, at work, during travel, or while engaging in hobbies, you are covered everywhere and at all times.

Difference with other insurance

The most significant difference between accident insurance and disability insurance for entrepreneurs (AOV) or mortgage protection insurance is that accident insurance pays out a lump sum, while other insurances pay out periodically, for example, every month over a longer period.

For example, if someone ends up in the hospital due to an accident and can work less for several years due to the injury and a recovery period, they can expect a payout from the following insurances:

Health insurance: covers hospital costs and often follow-up treatments during recovery. The payout stops when there are no more medical costs (within the coverage of the insurance).

Disability insurance: covers part of the income loss. The payout ends when the income from work is back to normal or at the end of the insurance term.

Accident insurance: pays out if the nature of the permanent injury can be determined. A fixed amount is paid out, depending on the severity of the permanent injury.

For whom is accident insurance beneficial?

Especially if you are sufficiently insured in case of disability to maintain a desired standard of living, it might be nice to receive a lump sum in addition to the accident insurance.

Accident insurance is less necessary if you have a lot of savings or assets (in the order of tens or hundreds of thousands of euros). If you are employed, there may sometimes be accident insurance through your employer. So, asking your employer what is arranged before taking out accident insurance for yourself and your family is wise.