No matter how careful you are with your health and body, accidents will still happen, whether you signed up for it or not.
When such unfortunate events happen, your Accidental Medical Expense Insurance can potentially be the determining factor for the quality of your recovery and your life in general moving forward.
It is intended to supplement your health insurance plan; accident medical expense (AME) insurance pays benefits for your out-of-pocket medical and non-medical expenses resulting from a covered injury or death that occurs on or after your AME insurance plan\’s effective date. Based on its scope of coverage, insurers also refer to it as accident expense, accident insurance, or accidental death insurance. That said, it is worth noting that an AME policy does not send payments to hospitals and doctors. Instead, it pays a lump-sum payment (benefit) directly to the policyholder on an indemnity basis.
At this point, it is worth noting that the money you receive from your AME insurance plan will not affect the payments you receive from your health insurance plan in any way. In fact, even if your health insurance settles all your medical expenses related to a covered injury, you will still receive your AME lump-sum payment as detailed in your plan. In essence, this means you do not necessarily have to use your AME money to cover your medical-related costs.
It is worth noting that an AME policy can cover either a single person or an entire family. For instance, if you have young children who engage in sporting activities, you should choose an AME policy that offers organized sports benefits for dependent children.
This is important because, in the unfortunate event your child gets hurt while participating in an organized sporting event, your AME policy will likely increase your payout by up to 20% to help you pay for your child\’s medical and non-medical needs resulting from the injury.
For a typical accident medical expense insurance plan, the scope of coverage extends from injury and illness to accidental dismemberment and death. However, to receive benefits, you have to be directly responsible for an injury or death. For instance, an injury resulted from an event you organized, scheduled, or supervised. The same is true if an injury occurs on a property you own, including leased and borrowed property.
In essence, AME coverage encompasses everything from basic accidents, such as a twisted ankle or a sprained wrist to serious injuries that require emergency medical attention, including hospitalization and multiple surgeries. In fact, a typical AME insurance plan covers more than 40 different medical and non-medical needs resulting from a covered injury or death. These include, among others, lacerations, burns, fractures, dislocations, X-ray, wheelchair, physical therapy, medical supplies, transportation, and accommodation needs. Remember, irrespective of the severity of your injury, your AME policy will pay you benefits, and you do not necessarily need to spend that money to settle your medical-related expenses.
However, the maximum amount of benefits payable depends on several factors including the type of coverage, the type and severity of your injury, and the medical treatment received. For instance, if you fall from a ladder while cleaning your gutters, you will receive a lump-sum payment from your AME insurance company to pay for both the medical and non-medical expenses related to your treatment. To receive reimbursement from your insurer, you only need to submit your medical bills to your insurer.
This process is typically fast and easy because your insurer will not need details regarding your medical history or any information related to your health.
To cater to different consumers, insurers typically offer different levels of AME insurance coverage. The most common policy levels include $2,500, $5,000, $7,500, and $10,000. Moreover, each of these levels offers a policy for a single policyholder and a policy for a family.
On average, accident medical expense insurance cost ranges anywhere from $25 to $80 depending on the level and type of policy (individual or family).
For instance, for a policy with a face value of $10,000, expect to pay about $49 and $75 per injury per month for an individual and a family plan, respectively. Similarly, a policy with a face value of $2,500 costs about $25 and $40 per injury per month for an individual and family plan, respectively.
Accidents, both big and small, often happen without warning and they do not discriminate, meaning virtually anyone can be involved in an accident at any time. Due to the unpredictable nature of accidents, you may not always have money set aside to pay for your medical costs in the event of an accident. Moreover, even if you have the money set aside for such emergencies, medical expenses could quickly stack up, leading to huge out-of-pocket costs for treatment co-pay, deductibles. Remember, your health insurance policy has exclusions, so you should have a back-up plan.
So, is accident medical expense insurance worth it? Yes, it is definitely worth it because despite your injury, you will still need money to cater to your living expenses as well as meet your financial obligations. An AME policy will give you the money you need to meet both your medical and non-medical needs, allowing you to focus fully on your recovery.
In fact, if you have young children, especially if your children participate in sports, or don\’t have a significant emergency budget, you should enroll in accident medical expenses insurance. Similarly, if you lead a physically active lifestyle, drive a car regularly or you are a senior, then you should also consider getting AME insurance coverage.
This is because you are more likely to suffer an injury compared to the average person, meaning an accident medical expense insurance will likely be worthwhile for you, especially since your health insurance is likely to be inadequate.
Moreover, a 2019 survey from the Kaiser Family Foundation shows that the average monthly deductible for family coverage has increased 22% and 54% over the last five and ten years, respectively. For this reason, it is a good idea to supplement health coverage with AME insurance coverage.
Imagine this happening.
A Tragedy Strikes:
You are driving on a highway at a decent speed when suddenly a child ran across the road, you instinctively steered away and unfortunately crashed into a tree. Your car wrecked and wounds, bruises and broken bones all over your body. Ambulance arrived and brought you to the nearest hospital. And while you are out, the bills are already piling up.
Good thing you’ve got CleverPolicy and your Accidental Medical Expense Insurance to cover your medical expenses. You and your loved ones can just concentrate on your recovery.