Benefits of Accident Insurance Accident insurance covers the insured person against loss from injuries or death resulting from an accident. Many people receive an accident insurance policy as part of a package of group benefits offered to them by their employer. People can also purchase an individual policy for themselves from an insurance company. 1. Accident Policies Are Additional Insurance o Accident insurance benefits are in addition to benefits paid by other types of insurance policies. An accident insurance policy can give the insured and his family peace of mind by protecting them from the financial hardships that often come with accidents. Along with providing benefits that help to cover the costs associated with an accident for an insured person when recovering from an accident, accident policies also provide cash benefits if the insured dies as a result of a covered accident. 2. Direct Policy Benefits o Accident insurance policies can cover the costs of medical and hospital care, according to Investopedia. Such policies can also provide income payments or cash to the insured person because of losses they suffered from a covered accident. 3. Tax Benefits o If your employer pays the premium for an accident insurance policy, you generally can exclude that benefit amount from taxes on your gross income. It also benefits the employer to provide such insurance to employees. The employer can usually take a tax deduction for the amount of the premium payment, according to Investopedia. However, if you have an accident and receive payments from an accident insurance policy paid for by your employer, you must pay tax on any income paid to you by the insurance company on an accident claim, according to the Internal Revenue Service. Moreover, if you paid for the policy, you do not pay income tax on the amount you receive on a claim for a covered accident.
Pages to are hidden for
"Benefits of Accident Insurance"Please download to view full document