Is Accident Insurance Worth Getting in Canada?

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There are tons of insurance available to cater for different unexpected happenings in our lives. While we cannot prevent the unexpected from happening, insurance policies protect us when it happens. Generally, insurance is designed to safeguard us financially should certain incidents occur. 

It can be a hassle picking what insurance is beneficial to you even though most financial experts will advise the need to have all insurance options to be on the safe side.

Your specific situation, like age, children, lifestyle, etc., will determine the type and amount of insurance you will purchase. This article will be reviewing accident insurance in Canada. Is it worth it?

What is Accident Insurance?

Accident insurance is an insurance option where the policyholder is paid directly in the event of an accident resulting in the insured’s injury. Once covered, you can spend the benefit payment however you choose. Note that accident insurance is complementary to, not a replacement for, health insurance. 

Accidents are unexpected, and their causes vary widely, hence why getting accident insurance can save you from spending out of pocket to finance your recovery. Generally, it works like other types of insurance products. You are required to pay a premium, and in return, you will receive coverage.

Accident Insurance Policy Structure

Accident insurance has guidelines governing it. Below are the policies:

  • Individual policies

The individual policy is designed to cover a single person or family that is not purchasing accident insurance through an organization.

  • Group policies

Group accident insurance plans are designed to be sold via an employer or other incorporated organization. They are basically meant and priced for a group as a whole.

  • On-demand accident insurance

On-demand accident insurance gives coverage to policyholders the same day they apply for it. Some providers may also offer episodic insurance policies that allow the holder to customize the policy term. The term could be the duration of coverage, amount, etc. 

With On-demand accident insurance, the policyholder is required to pay for coverage for as long as they need or can afford it. The prices for this policy usually match the term’s length; that is, with a lower price, you will get a shorter coverage term.

  • Occupational Accident Insurance

This specialized coverage offers organizations a practical way to help protect their employees by insuring them in case of an accident while on the job.

Occupational accident insurance provides an affordable alternative to worker’s compensation coverage for specific industry groups. It gives options for employers who seek to reduce the costs and risks associated with job-related accidents.

Accident Insurance Coverage Highlights

Below are coverages under accident insurance:

  • Accidental Medical Reimbursement Expense.
  • Business Travel for employees
  • Enhanced Schedule of Losses – this includes 200% Paralysis Benefits.
  • Occupational Accident Expense Allowance.
  • Permanent Total Disability.
  • Total Disability Weekly Accident Indemnity.

Accident insurance in Canada

Globally, people are exposed to one risk or the other either domestically or while working. These situations are unexpected, hence must be catered for by the individual or the employee.

While the healthcare system in Canada provides extensive coverage to residents, not everything is included in the package. As an individual, company, or family, you will have to seek external health insurance. Private insurance comes in handy where the government plan ends. 

Accident insurance covers the day-to-day surgeries and treatments that can sum up to become a big bill. It cannot replace or be liken to emergency health or travel medical insurance that you may purchase when you are out of Canada.

Private insurance companies provide coverage for accidents for what seems like a paltry monthly amount. But is it really worth the money?

Our Opinion

Accident insurance is relatively inexpensive; the benefits attached to it aren’t very significant. It might be beneficial for you if your health insurance has high deductibles. This is because accident insurance only offers a one-time payout that can help offset medical bills.

It is also worth it if you are not eligible for disability insurance, like having pre-existing medical conditions that insurers don’t cover. However, before signing up for any accident policy, it is advisable to carefully review the policy to see if it will come in handy for you.

Usually, accident insurance policies will have deductibles; you are expected to pay out of pocket for care before receiving the benefit. Note that the more you pay in premiums, the lower your deductible will be. Also, a higher premium has more exclusive coverage.

To be eligible for accident insurance coverage, you must be a Canadian resident age 18 to 65. Once you meet this requirement, coverage is automatically guaranteed; you can apply for coverage up to age 76.

Financing the expenses from an accident should not leave a hole in your pocket. There are tons of insurance companies in Canada that provide cash benefits to help with everyday costs should you incur injury from an accident covered under the policy. Once you claim the benefit after an accident, payment will be provided directly to you or your beneficiary.

What’s covered?

Once you are eligible for this insurance, you will need to submit your medical bill to the insurance company. The money paid to you does not affect any benefits that may be payable under your health insurance plan. So you get to choose how to use the money. Below are the treatment covered under accident insurance:

  • Emergency room
  • Dislocation
  • Burn
  • Eye injury
  • Initial doctor’s visit
  • X-ray
  • Accidental death and dismemberment
  • Concussion
  • Hospital admission
  • Hospital stay
  • Dental
  • Surgery
  • Laceration
  • Fracture
  • Six follow-up office visit

What’s not covered?

You will not receive benefits if the accident is a result of:

  • Suicide or a self-inflicted injury 
  • Drug usage or alcohol influence
  • War or involvement in active duty in the armed forces
  • Attempted criminal offence
  • Non-fare paying passenger
  • Pilot or crew member of an airplane
  • Racing 
  • Scuba diving
  • Parachuting
  • Rock or mountain climbing
  • Hang gliding
  • Bungee jumping
  • Injury sustained at work as a high steel construction worker, underground miner, oil rig worker, power line worker or logger.

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Kareena Maya

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Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.

Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.