With all kinds of insurance coverage options out there, it might be confusing knowing what kind of insurance offers what coverage. If you’re wondering what the difference between health insurance and accident insurance is, here’s a quick rundown.
What Health Insurance Covers
Health insurance is a kind of insurance coverage option designed to help pay for medical, surgical, and sometimes dental expenses incurred by the insured during a designated period of time. Health insurance can help minimize the costs of an illness or injury listed in the policy’s definition of coverage.1
What Accident Insurance Covers
Accident insurance is a type of supplemental insurance that can help the insured pay with designated medical costs resulting from an accident listed under the policy’s definition of coverage. In some cases, the policy may pay out a benefit in the event of an accidental death or the insured becomes disabled due to a specific accident outlined in the policy’s definition of coverage.2
The Difference between Health Insurance and Accident Insurance
So what, specifically, is the difference between the two?
The primary difference between health insurance and accident insurance is generally in the scope of coverage. For example, a health insurance policy normally covers expenses due to the hospitalization and treatment of the insured caused by illness or injury – including accidents.3 The coverage provided on an accident insurance policy is a little bit different, and often more narrow, in that it normally only provides coverage if the injury is the result of an accident as defined in the policy.3
What Coverage Do You Need?
While there are some similarities between health insurance and accident insurance, health insurance is a must for virtually everyone, while accident insurance is supplemental insurance that is optional and is meant to supplement existing insurance.
If you have any questions about health insurance, contact your benefits administrator or visit healthcare.gov. If you have any questions about accident insurance, contact a licensed insurance agent.
Investopedia, Health Insurance, 2019
The Balance, The Basics of a Supplemental Health Insurance Plan, 2019
Categories: Accident Insurance, Insurance