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THURSDAY, APRIL 15, 2021 | Roman

How do I find the best accident insurance?

How do I find the best accident insurance?

Private accident insurance is even relatively inexpensive for those people whose occupation is associated with an increased risk of accidents, which means that private accident insurance is even necessary here. Especially for extreme athletes, private accident insurance makes sense, because occupational disability insurance often requires high risk surcharges for dangerous hobbies such as skydiving, kite surfing or diving. In many cases, it pays off to exclude the dangerous sport from the occupational disability insurance and to take out additional private accident insurance instead. You can check such considerations quantitatively with the help of our accident insurance comparison calculator.

If you are involved in aviation or racing, you should clarify very carefully with the insurance company whether your accident insurance will really pay out if the worst comes to the worst, because many providers exclude particularly dangerous leisure activities from their cover.

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The statistical risk of becoming disabled as a result of an accident is rather low, which is why private accident insurance is significantly less expensive than, for example, occupational disability insurance. If it does happen, this can entail considerable investment costs for ramps and doors suitable for the disabled. Complex modifications often have to be made to the motor vehicle as well. For these purposes, 100,000 dollars are quickly used up. Private accident insurance at least relieves the person affected of all such consequential costs, whereas occupational disability insurance only pays for a manageable monthly pension. To get an idea of the premiums you will have to pay for private accident insurance, we provide our free and non-binding accident insurance comparison calculator.

A special case: accident insurance for a child

Accident insurance for a childChildren are very agile and active, which also has its downside, because a little carelessness is often enough to generate serious accident consequences from it. While accident insurance cannot avert a dire fate, it can at least cushion the financial consequences of permanent disability. In the case of children’s accident insurance, the sum insured should be set high enough so that, in the event of a nasty accident, both rebuilding costs on the house and lifelong care costs can be covered by the insurance’s lump-sum payment. In addition, an accident annuity can be integrated into the policy for child accident insurance in the sense of sustainable disability protection.

Sudden and unexpected illnesses can be described as “accidents” in a broader sense, at least that is the argument of some accident insurers, who have even included infections such as TBE or Lyme disease, which can be triggered by tick bites, in the range of benefits. Other interesting additional modules are, for example, the daily hospital allowance already mentioned above and the convalescence allowance.

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Family accident insurance

It is particularly tragic for everyone involved when the main breadwinner in a family permanently loses his or her ability to work due to an accident. In this case, private accident insurance provides financial security for the spouse and children. If one thinks this idea through to its logical conclusion, one comes to the conclusion that the extension of the family accident insurance to include the important components of the accident pension and death benefit represents the optimum coverage for the worst case scenario. If, in addition, you opt for the progression variant in your policy, you will additionally upgrade higher degrees of disability. This will be explained in more detail later.

Accident insurance in comparison - performance decides

When comparing accident insurance, the focus is primarily on the accident insurance benefits. Depending on the selected tariff, the private accident insurance pays out a one-time larger sum, which was determined with the sum insured, or a monthly pension, provided that a permanent physical damage was caused by an accident. The degree of disability, which is determined on the basis of the so-called limb tax, determines the percentage of the sum insured that is finally paid out.

The perhaps somewhat macabre-looking limb tax assigns a quantitative importance to the individual limbs, which in turn determines the degree of disability in the event of their loss. Of course, the whole thing is capped at 100 percent, since the sum of all individual limbs would result in a much higher value in purely mathematical terms, but what would 237 percent of a person mean? So here are some exemplary excerpts:

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  • Blindness in one eye: 50 percent
  • Blindness in both eyes: 100 percent
  • Loss of an arm (or a leg above the middle of the thigh bone): 70 percent
  • Loss of one hand (from wrist): 55 percent
  • Loss of one foot (from ankle): 40 percent
  • Loss of fingers: thumb 20, index finger 10, other finger 5 percent
  • Loss of sense of smell: 10 percent
  • Loss of a little toe: 2 percent

One may argue about these numbers and allocations or consider them unfair. The fact that the table is as it is may also be due to the fact that there have always been and still are people who make a sport out of defrauding insurance companies by deliberately maiming themselves in order to collect the highest possible share of the previously agreed insurance sum. At FinanceFuel, we know that health and an intact body are not worth the price of money.

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