What Is Voluntary Accident Insurance?
Overview
In this article, we will cover voluntary accident insurance in-depth, and group coverage with comparisons between the options of insurance types.
The topics we will cover are as follows:
- What is voluntary accident insurance?
- Types of voluntary accident insurance.
- Group Critical Illness Insurance.
- Group Life Insurance.
- Voluntary Accident Insurance Cost.
- What is the difference between group life and voluntary accident insurance?
- Voluntary Accident Insurance Quotes.
What is voluntary accident insurance?
Voluntary accident insurance provides employees with added protection to meet their individual needs.
It provides comprehensive coverage and protection for medical expenses to help employees pay for unexpected costs should they be involved in an accident.
Therefore, the term voluntary accident insurance refers to this coverage that covers employees' unforeseen accidents and unexpected costs, which is paid for by them. Still, it's offered by their employer and granted to them via payroll deduction.
Accident insurance coverage can help to supplement costs that are not covered under existing medical plans.
This insurance provides the insured with funds that can be used for different reasons. Therefore, this insurance can help with out-of-pocket expenses like deductibles, copays, medical transportation, childcare, and more.
Accident insurance through an employer often covers the following:
Injuries
For example, hospital visits due to fractures, concussions, and severe burns.
Medical treatments
This includes certain types of surgeries, therapy services, etc.
Hospitalization
Inpatient rehab after an accident, hospital admission for services, etc.
Additional
Accidental death, dismemberment, and coma, for some examples.
Types of voluntary accident insurance
To summarize the above points, voluntary accident insurance is an accident supplement contained in an accident insurance policy that the employer offers to its employees.
Different types of accident insurance may be offered by the employer, such as:
- Death & Dismemberment
- General Accident Insurance
- Disability Insurance
- Accidental Death Cover
- Permanent Disability Cover
- Permanent Partial Disability Cover
- Temporary Total Disability
Personal accident insurance
Personal Accident insurance is a particularly essential resource for business owners and self-employed people, who may need to individually ensure a stable source of income in case they are unable to work, either temporarily or permanently.
Pitsas Insurance has many years of experience in the health insurance sector, and we have created affordable products that cover any particular insurance need you may have.
You can find more information about personal accident insurance here.
Group Critical Illness Insurance
When it comes to personal accidents or otherwise, unexpected illnesses bring with them unexpected challenges.
Critical Illness Insurance is a way to provide employees with extra protection to meet any unexpected illnesses with insurance coverage.
Many companies will offer critical illness insurance in packages; essentially, it's to prepare employees financially if critical illness circumstances arise.
Group Critical Illness insurance is a type of insurance in which a single contract covers an entire group of people.
Group Critical Illness Insurance can also provide additional benefits. For example, it may also be used to help cover any costs such as emergency child care, mortgage payments, or out-of-pocket medical costs.
A summary of benefits:
- Cash benefit that can be used the way the insured chooses.
- Helps cover costs without going into savings.
- The payouts don't depend on the employee's income.
- Participation in other insurance offerings is not needed to receive it.
Critical illness insurance will ensure you receive a payout if you are involved in one of the accidents or medical conditions specified in your policy. It usually only pays out once, after which the policy ends.
What's covered varies significantly between different insurance companies. The most comprehensive packages cover over 50 different conditions or emergencies, whereas other policies can be much more limited.
To give you a coverage overview, here are some examples of what group critical illness insurance will usually cover:
- Conditions such as multiple sclerosis
- Accidents and traumatic head injury
- Major organ transplant
- Heart attack, strokes
- Some forms of cancer
- Parkinson's disease
- Alzheimer's disease
Most policies will also consider coverage for permanent disabilities as a result of injury or illness. Some will also define how serious a condition has to be to qualify for a payout.
Some policies make smaller payments for less severe conditions or additional coverage for children. But not all conditions are covered.
Some of the more common exclusions are:
- Injuries such as broken bones
- Non-invasive cancers
- Hypertension or high blood pressure
Group Life Insurance
Many companies also combine voluntary accident insurance with group life insurance, or group accident insurance, and as mentioned above, group life insurance is a single coverage for an entire group of people.
The policy owner is usually an employer or a company that offers a policy cover for its employees or members of the group, hence the term group being used.
Group life insurance is often part of an employee benefits package, and in most cases, the cost of group coverage has its advantages. Group coverage is often much cheaper than what the employees or members of the group would pay for a similar package or individual protection.
It's a wise decision to take advantage of group life insurance through your employer or another group if it's offered to you, especially if you have no existing personal coverage or life insurance.
The employer or other group entity keeps the insurance policy, known as the master contract, and you will be a policyholder as an employee.
All of the group members who are usually covered typically receive a certificate of insurance that serves as proof of insurance. Beneficially, as with other types of life insurance, group life insurance allows you to pick your own beneficiary.
One of the most common types of group life insurance is known as term insurance, or group term life, as it's also known. That is typically provided as an annual renewable form of term insurance.
If group term insurance is provided through an employer, they most usually pay for the premiums, and the amount of coverage is typically equal to one or two times the annual salary.
Group term coverage is normally active until your employment or group activity ends or until the specific coverage ends. There is sometimes the option of converting the group coverage to an individual policy, such as group accident insurance to personal accident insurance, but the conversion premiums are usually not a comparable option. The conversion tends to be higher than premiums for personal policies available to individuals, therefore, that's not always the best route to take.
What is the difference between group life and voluntary accident insurance?
When you want to understand the types of insurance and their differences, it is important to note the inclusions and exclusions of each.
For example, the policyholder's beneficiaries may not receive any benefits in case of death due to an accident, or the beneficiaries need to prove if the death was the direct result of an accident.
Overall, there is quite a significant difference between group life and voluntary accident insurance, as mentioned above.
Here we'll cover some of the different types of life insurance plans we have mentioned. These are as follows:
Term insurance
Term insurance is a pure life cover. Term life insurance will payout in the case of an unfortunate incident taking place during the term.
Endowment policy
Endowment policies have a fixed term and help the insured earn returns on investment. This insurance policy provides a death benefit as well as maturity benefits.
Money-back policies
A money-back policy is another type of life insurance policy that provides periodic returns at predetermined intervals.
Whole life plans
A whole life policy usually has no fixed term and the insurance plan will continue until the premium is paid. Generally, the maturity age goes up to 100 years, and matured endowment coverage will be received if the insured survives beyond this.
Annuity plans
Annuity plan policies provide financial benefits post-retirement and give peace of mind as they cover the loss of income during retirement.
Accidental death insurance
Accidental death insurance policies protect the insured and their family in case of severe injuries or death in an accident.
Often, there may be confusion between the two, traditional life insurance and accident policies. We will cover what those differences are.
The differences between group life and accident insurance policies
1.Cause of death covered
Traditional life insurance covers death due to most causes but usually excludes suicide. The accident policy offers a payout only in case of injuries or death in an unforeseen accident.
2.Death condition
Most life insurance policies pay the death benefits irrespective of when the policyholder passes away. However, accidental death benefits are available only if the accident happens within the specified period.
3.Variety of plans
Another difference between group life insurance vs. accidental death insurance is the variety of coverages on offer.
Group life insurance provides multiple options to suit individual requirements such as retirement, meeting financial goals, and death cover. In contrast, accidental death covers only one option, which is loss due to an accident.
Partial benefit
If you want to include coverage for a partial disability, or example, partial loss of sight, under a regular life insurance policy, you need to pay an extra premium.
In comparison, an accident insurance policy provides such benefits without additional cost.
Voluntary Accident Insurance Cost
The cost of voluntary accident insurance depends on the number of employees, and the type of activities, as the more dangerous an activity, the higher the premium.
Other considered factors are the value of salaries and the insured amount.
Voluntary Accident Insurance Quotes
As a specialist in the insurance field, we have created affordable insurance which covers any particular health need you may have.
Many employees and businesses mainly focus on voluntary and group accident insurance.
On our website, we have covered why you will want to choose accident insurance with us.
What we offer in a snapshot:
- Low insurance cost
- Tax-exempted lump sum
- Flexible payment plans
- Guaranteed Acceptance - No medical questions
- Coverage from only €22 per month
- USA and United Kingdom underwriters
- Immediate settlement of claims
- 37 years of insurance expertise
We have varied protection plans:
Plan Silver: Accidental death & permanent disability coverage
Plan Gold: Accident medical expenses no requiring hospitalization insurance
Plan Platinum: Income protection, hospital & surgical cash benefit
Plan Diamond: Income protection, outpatient expenses & hospital cash lump - sum
Plan Silver
covers death from an unexpected and unintentional accident that isn't the symptom of a disease. It also offers compensation in case of hearing or vision loss, or a mutilation following an accident.
Terms and conditions are as follows:
- People aged between 17 and 63 are insured.
- The benefit is paid provided the loss of life or the disability occurred within one year from the day of the accident.
- Coverage provided until the insured reaches the age of 71.
- Option to include all members of the insured's family.
Plan Gold
covers accidents and unexpected medical expenses. We pay your out-of-pocket medical expenses, all you have to do is focus on recovering.
Terms and conditions are as follows:
- People aged between 17 and 64 are insured.
- Coverage provided until the insured reaches the age of 69.
- Medical expenses paid within the first year from the day of the accident.
- 1,200 euros minimum amount of annual coverage.
Plan Platinum
covers in the event of loss of life or permanent total disability by accident and at the same time provides income protection. Additionally, the plan offers a hospital cash benefit and optional surgical benefit.
Terms and conditions are as follows:
- People aged between 18 and 64 are insured.
- Coverage provided until the insured reaches the age of 70.
- Benefit paid from day one of disability.
- Income protection insurance from 100 euros.
- Hospital cash benefit up to 5.000 euros.
- Optional surgical benefit up to 5.000.
- Optional benefits for medical visits, diagnostic tests, and exclusive nurse.
Plan Diamond
offers income protection, accident outpatient medical expenses & hospital cash benefits. This plan offers various types of accident insurance coverage.
Pitsas insurance offers three plans you may choose from with varying levels of coverage.
For more information about our available insurances, please look at our website, and contact us if you have any questions.
Pitsas Insurances
24/10/2022
LImassol, Cyprus