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Accident Insurance - Helping to Improve Financial Wellness

Millions of working Americans struggle each year to manage the out-of-pocket non-medical and medical expenses associated with unforeseen health events. 1  Their financial challenge has been exacerbated by the increased popularity of high-deductible health plans in the workplace and the embrace by some employers of a defined contribution model for health care benefits. Now, to assist their employees, many employers have begun to offer an increasingly broad array of benefits programs that can complement traditional medical insurance offerings.

One such benefit, accident insurance, can help employees cope with the out-of-pocket non-medical and medical expenses, or lost wages, stemming from accidental injuries. Neither a medical insurance product nor a substitute for it, accident insurance is designed to complement an employee’s existing medical and disability insurance benefits.

For employers, accident insurance offers a low-cost way to deliver a more robust benefits package to employees. It also may help smooth the transition to high-deductible health plans. For employees, it can provide cash to pay for a portion of out-of-pocket injury-related expenses, including some not typically covered by medical insurance, such as transportation and home modifications. Or it may be used to offset a portion of lost wages.

Although accident insurance is one of the fastest-growing employee benefits-nearly a third of U.S. employers offered it as of 2010, up from 19% in 2002 2 - more education about the product is needed, both for employers and employees. About a third of employers who do not offer it, for example, say they are still not very aware of the product or its benefits. 3

This report (PDF) identifies the various types of accident insurance available in the marketplace, examines the trends driving the need for the product, outlines the benefits it offers to employers and employees, and describes best practices for employers that may want to implement an accident insurance program.

Download Accident Insurance: Helping employees cope with out-of-pocket- non-medical and medical expenses stemming from accidental injuries (PDF).

1 The Henry J. Kaiser Family Foundation, "Medical Debt Among People with Health Insurance," January 2014.
2 LIMRA, "Weathering the Storm," 2011, page 6.
3 LIMRA, "Weathering the Storm," 2011, page 7.

Group Accident Insurance coverage is a limited benefit policy issued by The Prudential Insurance Company of America, a Prudential Financial company, 751 Broad Street, Newark, NJ 07102. Prudential's Accident Insurance is not a substitute for medical coverage that provides benefits for medical treatment, including hospital, surgical and medical expenses and does not provide reimbursement for such expenses. The Booklet-Certificate contains all details, including any policy exclusions, limitations, and restrictions which may apply. If there is a discrepancy between this document and the Booklet-Certificate/Group Contract issued by The Prudential Insurance Company of America, the Group Contract will govern. Please contact Prudential for more information. Contract provisions may vary by state. Contract Series: 83500.