What is an Accident Policy?

hey there it's Ron with insurance for Texans and we've been spending some time on catastrophic health insurance the last few days and today we're going to talk about the accident policy component of that before we do that I just want to say if you enjoy or get useful information out of our YouTube channel hit the the Subscribe button down below turn on those alerts and notifications so that you'll know when the next installment of our tips about insurance in Texas comes out that said let's talk about the second component of a catastrophic health insurance policy people search for alternatives to The Exchange policies that were created when you Affordable Care Act when in a place and one of the ways that especially the younger crowd is doing that is by seeking out catastrophic health insurance they see it as a great alternatebecause it is it's more cost-effective number one number two they don't feel like they go to the doctor very often so they just want to protect ourselves on the on the big-ticket items so let's talk about how an accident policy does that the accident policy is going to cover you when something goes wrong let's say you're skiing in Canada or maybe your ride to Mountain Bike in Colorado or maybe you are up on your roof putting up Christmas lights and You Take a Tumble and you break an arm you break a leg you you hurt yourself in a fashion that is an accident this is going to involve a trip to the ER it may involve surgery cast follow up with orthopedic surgeons the bill can become large in a hurry if that's the case the accident policy is going to provide you benefit to thatso how does it work we've got four key components to at number one is the deductible number two is what we're going to refer to as the cover to mount the third is coinsurance and then the 4th is the benefit maximum so let's take a look at each of those four number one is the deductible most people are familiar with this it is accident specific so let's say it's $1,000 it can be higher can be lured but if it's $1,000 you're going to be responsible for that first thousand dollars of the bill that comes with this of the care after the accident the second is going to be the covered amount so we have this amount of money that is going to be paid out after the deductible for the services rendered so let's say that the total bill is $25,000 and the deductible is a thousand so we have a $24,000 total amount left over the covered amounts typically going to be 80% and so the the hot the insurance company is goingpay that money directly to the hospital to the physician to the folks that are putting the cast on that 80% is your you're never going to pay it what you are going to pay that goes along with that is the coinsurance which is 20% so 80% plus 20% is 100% So 20% of $24,000 is $4,800 that would be your responsibility plus the deductible for the total bill after this fall from your roof has occurred and you have broken your arm in spectacular fashion and your wife is making fun of you like mine would have methat greatly reduces the bill now if it's a big accident we've got a careflight involve something you went big instead of going home the maximum is going to kick in on the amount that's covered that's the fourth piece so it's likely to be capped out at $100,000 make sure that if you're going to go big you don't go to big but we'll talk about it another installment later is how the hospital Indemnity is going to pair with that so why would you consider using a catastrophic Health policy and pair this accident policy with the critical illness and the hospital Indemnity again this is for Big Stuff only if you're gone for a cold to the Urgent Care or are you using the ER as a primary care doc this is not your cup of tea this is for folks who have good primary care that they are willing to pay cash for to save money on their overall health cost through Audiit's to keep you from Financial ruin it is real insurance so that's going to make it a differentiator from the health sharing plans you're not going to pay the bill until the claim has been settled in the final amount is determined that gives you some flexibility in negotiating power with that Health System it is renewable up to the age of 65 when Medicare would kick-in that's a great thing for you because it goes on in perpetuity gives you options and that is what most Texans are looking for that freedom to do what they want the option to get the care that they want in the way that they want and a catastrophic Health Plan does that and the accident policy itself is a key component to that I'm Ron with insurance for texting if you want to read more about the accident policy itself there's a link in the comments below if you love what you heard hit the Subscribe buttonleave us a question leave us a comment I'm wrong with insurance for Texans and we're here to help Texans