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Not that in and of itself accidental health insurance is bad but unless an agent is representing a well advertised product,
read the fine print. There are some companies that prop up their reserves with premiums paid on policies for misunderstood
conditions. In my beginning days back in the early eghties I worked for a company that sold a product they taught their agents
to steer away from the most important aspect of the policy which was that it only paid for accident related injury.
The
script the company taught gave the impression it was accident and health insurance. The policy jacket left
with the buyer even had the title accident and health.
This was many years ago and I don't have personal information
the company (which is still in business) continues that practice. But there is one thing sure in life, someone is always thinking
of ways to go around the rules in order to profit. A comforting surety in life to counter is there are
more rules and stricter punishments for those people.
Accidental health policies have very small premiums which
should tip off anyone thinking it is an accident and health policy. You may pay only $25 a month for accidental
health coverage when a personal accident and health policy for the same person would be in the area of $200 a month. And thats
a young single man. If you're in your 40's or a woman the premium can easily be in the $300 and higher range.
Accidental health insurance can help in that the payments made from these policies are usually diredt to the policyowner
and can serve to satisfy the deductible on the major medical plan one should have. The accidental health policy usually pay
a lump sum for injuries like brakes, burns and cuts but has no coverage for illness and diseases.
There is usually
an option to add accidental death an dismemberment to an accident policy but don't be misled to think you have full life
insurance because the accidental death is just that, it pays if you die accidentally.
All in all, the accidental
health policy is for supplemental purposes and if you have found you have purchased an accidental health product but don't
have a major medical plan, you should make arrangements for a major medical. And if you are sure the agent misrepresented
the accident policy as a basic health policy that covered illness and disease, then report them to the state authority for
insurance.
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