Accident And Sickness Insurance

What Does Accident And Sickness Insurance Mean?

Accident and sickness insurance provides protection to policyholders by compensating for income losses resulting from an accident or illness that prevents them from working. Similar to disability insurance and workers’ compensation, it offers a monthly benefit to replace the lost income. People who already carry a separate disability insurance policy often use accident and sickness coverage as an extra layer on top of it.

Insuranceopedia Explains Accident And Sickness Insurance

Health insurance covers healthcare expenses but typically does not compensate for income lost due to accidents or illnesses. For instance, someone diagnosed with a chronic illness, such as cancer, might lose their income while undergoing treatment and recovery. Accident and sickness insurance helps address these financial challenges by providing coverage for various accidents and illnesses. It can also serve as a supplement to Social Security disability insurance or workers’ compensation. People with a pre-existing diagnosis sometimes also look into life insurance for chronic illnesses to round out their financial protection.