What Is Accident and Sickness Insurance

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Accident and Sickness Insurance: What Does It Cover?

Accident and Sickness Insurance Coverage

Accident and sickness insurance is designed to provide financial support in case you are unable to work due to an accident or illness. The coverage typically includes:

  1. Medical Expenses: Costs related to medical treatment following an accident or for sickness.
  2. Income Replacement: A portion of your income is replaced if you’re unable to work.
  3. Hospital Stay Benefits: Daily compensation for each day you’re hospitalized.
  4. Rehabilitation Costs: Covers expenses for rehabilitation post-accident or illness.
  5. Death Benefits: In case of fatal accidents, a lump sum is paid to beneficiaries.

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Sickness Insurance

Comparison with Income Protection Insurance

FeatureAccident & Sickness InsuranceIncome Protection Insurance
CoverageAccidents and specific illnessesBroad range of illnesses and injuries
Benefit PeriodUsually until recovery or a fixed periodTypically until retirement, death, or return to work
PayoutLump sum or monthly paymentsMostly monthly payments
Waiting PeriodShorter, often immediate for accidentsUsually longer, customizable
Premium CostGenerally lowerHigher due to extensive coverage


While both accident and sickness insurance and income protection insurance provide financial safety nets, they differ in coverage scope, benefit periods, and cost. Accident and sickness insurance is more specific, whereas income protection offers broader coverage. Understanding these differences ensures you choose the right policy for your needs.

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Frequently Asked Questions

If I have accident and sickness insurance, can I still collect unemployment?

Yes, having accident and sickness insurance doesn’t affect your eligibility for unemployment benefits. While insurance covers accidents and illnesses, unemployment benefits are a separate government assistance program. You can collect both if you meet the individual criteria for unemployment and have an active insurance policy.

What is covered sickness?

Covered sickness refers to specific illnesses or medical conditions that are included within the terms of an accident and sickness insurance policy. If you fall ill with a covered sickness, the policy provides financial support, such as compensation for lost wages or medical expenses, depending on the terms and conditions.

What are the differences between accident and sickness insurance and disability insurance?

Accident and sickness insurance provides financial support if you cannot work due to temporary illness or injury, often covering a shorter period. Disability insurance, on the other hand, offers income replacement for long-term disabilities that permanently prevent you from working in your occupation. Both serve different needs in income protection.

Who does not need accident and sickness insurance?

Individuals with substantial savings, alternate comprehensive insurance coverage, or those who have minimal financial responsibilities may not need accident and sickness insurance. Additionally, retirees or those who have other means of support during an illness or injury, such as support from family or government benefits, might also forgo this insurance.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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