| Health insurance is designed to protect against | | | | accidental loss of life (also called accidental death), |
| loss of income and expenses for medical care. | | | | accidental loss of limb or sight (dismemberment), |
| There are two broad categories of health | | | | loss of time and/or income, hospital expenses, |
| insurance policies: disability income policies and | | | | surgical expenses, and medical expenses like visits |
| medical expense policies. | | | | to the doctor. |
| Disability income policies can also be referred to | | | | Accidental death benefit can also be referred to |
| as loss of income, loss of time or replacement | | | | as "principal sum." This type of coverage should |
| income. This type of policy will pay benefits to | | | | not be confused with life insurance. There is a |
| an insured who is disabled and can no longer work | | | | world of difference between the two. Life |
| to earn a regular income. Payments can be | | | | insurance policies will generally be paid regardless |
| weekly or monthly depending on the policy. | | | | of the cause of death. An accidental benefit is |
| Medical expense policies are represented by a | | | | paid ONLY if the death is accidental as opposed to |
| wide range of coverage from very minimal to | | | | a death by natural causes or illness. |
| comprehensive packages with multiple coverage. | | | | The person who receives the death benefit is |
| Some include both accidents and illnesses, various | | | | called the beneficiary. The policy owner has the |
| hospital expenses and other costs pertaining to | | | | right and responsibility of naming beneficiaries. |
| medical care such as accident and sickness | | | | Usually there is a primary beneficiary however he |
| policies, hospital-stay policies, basic medical | | | | she can assign a second and even a third |
| expense policies and major medical expense | | | | beneficiary. |
| policies. | | | | The primary beneficiary is the first person in line |
| Any of these policies might cover various | | | | to receive the benefit in the event of the death |
| combinations of the above and may be paid in a | | | | of the policy holder. The policy owner can also |
| lump sum.Some policies cover only accidents and | | | | name a second beneficiary who would receive the |
| not illness. As you might imagine, policies like | | | | benefit in the event the primary beneficiary dies |
| this are very specific about what is considered an | | | | before the insured. Some policies can include a |
| accident. | | | | third beneficiary who would be in line after the |
| It is important to understand what is defined as | | | | first two. |
| an accident as it pertains to the health insurance | | | | There is another important element in regard to |
| industry: an accident is an event that is | | | | accident policies: An accidental death may not |
| unforeseen and unintended. | | | | be instant. A person can die as a result of an |
| Keep in mind that any discussion of this type of | | | | accidental injury months after the accident |
| policy also applies to any type of policy that | | | | occurrence. Read your policy carefully because |
| includes accidental coverage, not just accident | | | | most stipulate that the accidental death benefit will |
| specific policies. | | | | only be paid if death occurs within three months |
| Accident benefits are most commonly paid for | | | | of the accident. |