Accident and sickness insurance is insurance that protects policyholders from losses of income due to being involved in an accident or getting a sickness that forces the person to stop working. It is similar to disability insurance and workers compensation in that it pays out a monthly benefit to replace the lost income.
Health insurance covers the cost of health care expenses. However, it typically does not cover losses in income due to accidents or illnesses. Thus, a person who develops a chronic illness, such as cancer, could lose their income while fighting to recover. Accident and sickness insurance aims to alleviate these financial problems with coverage for a number of accidents and illnesses. It can supplement social security disability insurance or workers compensation.
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