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Accident and Critical Illness Insurance – All You Need to Know in 2023

Accident and Critical Illness Insurance – All You Need to Know in 2023

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— Last Updated May 27, 2022

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8 mins
Reviewed by
Eric Berkman

Guide Accident and Critical Illness Insurance – All You Need to Know in 2023

— Last Updated May 27, 2022

Stephanie Wilson

Director of Operations


Reviewed by

Eric Berkman

First off, there is no such thing as accident and critical illness insurance.   However, critical illness insurance is a product, and it may be able to cover illnesses that you have suffered due to to an accident.  So, if you’re Googling “accident and critical illness insurance,” and you found this post, then we’ll do our best to help you understand what we think you’re looking to learn about. So, accident and critical illness insurance, covers the financial costs of accidents/unexpected situations or unexpected illnesses, as its name suggests. If you have this type of insurance, your family may also be eligible for some benefits of insurance even if the plan is under your name.  However, keep in mind that this type of insurance is not health insurance so make sure you always have that protection.  And, what you’re really looking for is critical illness insurance.  Many CI plans will offer accident coverage.  That’s the key takeaway from this article.

Our guide below will help you learn everything you need to know about accidents and critical illness insurance and help you decide whether or not having this type of insurance is worth it. Without any further ado, let us dive straight into our guide.

What exactly are accident and critical illness insurance?

In short, what’s known as accident and critical illness insurance is the type of insurance that will help you cover the medical costs due to the accident or an unexpected illness you might have. The idea behind this insurance is that it can cover the rest of what your health insurance cannot cover in case you have a critical illness.

This type of insurance is one of the best types of insurance you can get if you aren’t sure if you’ll have enough money to cover the medical bills due to an unexpected event or illness. So in that way, it is more of a safety net than something you wouldn’t be able to live without.

However, in times such as these, having a safety net for our health can be a lifesaver, literally. Medical expenses are very high, and being on the safe side is almost always worth it, even when there are no particular needs for you to think so. Fortunately, accident and critical illness insurance can provide a safety net, so you won’t have to be as worried about finding the money to get the care you need to recover. If you are looking for a specific insurance, you can get critical illness insurance for diabetics.

For whom are accident and critical illness insurance intended?

Accident and critical illness insurance is meant for everyone who believes that they can be a victim of an accident, an unfortunate event, or even a critical illness they might not be able to recover from without additional money.

Sadly, money plays a vital role in the everyday lives of people. It’s an even sadder state of affairs when a life or death situation is decided by whether or not an individual has the monetary means to cover the medical expenses. That’s these types of insurance step in, and they are dedicated to those who:

  • Might be struggling with finances – No one should have issues with their health because they might be struggling with finances. No matter how good it is, healthcare is often much more expensive than some individuals can afford. Thus, this type of insurance might be a perfect option for them.
  • Working or living in high-risk areas – You never know what might happen every single time you leave your house (and even in your house). For people who live in high-risk areas, having an accident and critical illness insurance might be the best choice they can acquire. It can help save their life.

Also, people who might genetically develop a serious/critical illness should get this type of insurance as well. You cannot predict some things, and it is always better to have something that you know might help you out in the future. One of the best things you can do is acquire accident and critical illness insurance.


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What accidents will this type of insurance help you out with?

We all know that accidents might happen and that you might need to cover the medical bills if something unexpected happens. Here are a few common accidents that this type of insurance will cover:

  • A broken limb – Surprisingly common, a broken limb is something we never expect to happen. Sadly, this does happen sometimes, and the treatment can take up to several months. Accident insurance will cover it accordingly, depending on the benefits that apply to you.
  • Loss of a limb – Some workplaces are much more dangerous than others and, in case of a very unfortunate event, you might lose a limb while working. If that is the case, the only silver lining you might have (provided you survive) is accident insurance.
  • Lacerations – Lacerations are something we rarely think about. Keep in mind that sometimes your health insurance plan won’t cover mere cuts or similar, but if a serious laceration occurs from an accident, a critical illness insurance plan will typically cover the medical costs accordingly.
  • Loss of life – The worst outcome of an accident is the loss of life. However, this type of insurance will pay the money to the beneficiary you have designated. We fully understand that this is something no one is expecting, but it might be better to be secure when it comes to this one.

There are accidents that your typical health insurance plans won’t cover. For instance, accidents that are not serious or are quite common, like simple cuts and bruises, won’t be compensated for. For serious accidents (like the ones we have listed), you should expect your health insurance to at least cover the medical bills partially, if not completely. However that won’t always be the case, so having a critical illness insurance plan might be worth it to you.

What critical illnesses will this type of insurance help you out with?

For those who are fortunate enough to never have had to resort to accident and critical illness insurance, you aren’t aware of how lucky you are. Critical illnesses are not something to be trifled with. They can range from mild to serious in terms of severity, and more often than not, this will depend on how fast you have received treatment.

The sooner you do, the better it will be, especially when it comes to critical illnesses such as:

  • A heart attack– Definitely something most people are afraid of due to the high mortality rate of a heart attack, but also something that you can survive as well. If you suffer a heart attack, you should be rushed into the hospital and pay the treatment bills. Critical illness insurance will help you out with that.
  • A stroke – Believe it or not, strokes happen often, and most people survive them. However, the physical therapy costs after a stroke and the medical bills are insignificant. You might need  insurance to help you cover that.
  • Cancer – Cancer medications and treatment are quite expensive, and most people can’t afford them very easily. With good insurance (critical illness insurance), you’ll be able to cover the costs at least partially, and you could start your cancer treatment as soon as possible.
  • Organ transplant – In some rare situations, you might also require an organ transplant. As with everything above, this is not cheap as well. With good insurance, you’ll completely forget about the medical costs.

We never wish for any of this to happen to anyone, but that doesn’t change the fact that it can still happen. The best safety net you can have in situations like that is critical illness insurance. It will help you cover the costs of the medical bills at least partially, beyond your healthcare insurance, and you’ll worry about one less problem.

Pros of having accident and critical illness insurance

Accident and critical illness insurance will pay you a sum of money based on the severity of the accident/critical illness that goes under the policy coverage. However, you don’t have to spend that money on your treatment at all. The insurance will do its job and pay you out the money – what you do with it is entirely up to you. It’s time to stop wondering is critical illness insurance worth it.

In some rare cases, you might not even need to pay anything at all since your health insurance will cover it. The money you receive from accident and critical illness insurance will be yours for spending. Thus, you can pay your mortgage rates, your college loans, your bank loans, etc.  It’s designed to help you focus on recovery, while not having to worry about your bills.

The biggest “PRO” of accident and critical illness insurance is that you will feel safe even when something unexpected happens. Your insurance providers cannot treat you or provide you medical aid, but they can provide financial assistance. For some, this is the best benefit you can receive since you’ll be able to choose your treatments personally and make the best choice for your health.

This type of insurance doesn’t mean that only you will get the benefits. Depending on the type of insurance you get, it can also cover the medical expenses of your closest ones – family members. There are family insurance plans, and we highly recommend checking them out since they will offer you some of the finest insurance deals available thus far. Your Policy Solver agent can help with that. 

Cons of having accident and critical illness insurance

There are some cons to having this type of insurance as well. For instance, when it comes to critical illnesses, some might be recurring, and your insurance policy might not cover them for the second time. It doesn’t have to be the case, but if you don’t receive a payout for the second time it happens, then you should consult with your insurance providers and inquire why that has happened.

Yet another “CON” of having this type of insurance is that it might expire when you reach a specific age so inform yourself about aging and long term care. Some critical illnesses are, by far, more common among older age groups of people, and some insurance companies might not want to cover the expenses in full but provide a smaller amount of coverage, based on the risk percentage.

The final “CON” is that the insurance company’s policy does not cover some critical illnesses that you might get. If this is the case, you should, nevertheless, consult with your insurance company. However, we recommend that you talk with them and see if you can get a deal that will benefit you more.

Should you get accident and critical illness insurance, and why?

Despite the “CONs”, we firmly believe that you should still get accident and critical illness insurance. Even if you never end up using it (thankfully), it is better to be safe and sound when it comes to this one. Some of the injuries/illnesses that this type of insurance covers are quite expensive to treat, and you might need additional funds to get through it.

Since we follow the “better safe than sorry” principle, we firmly believe that insurance can help you go through a very difficult situation. Even more, this insurance is compatible with health insurance as well, meaning that you will receive funds from both. Once you treat your injuries or illnesses, you can invest in something meaningful.


Accident and critical illness insurance serve as a safety net if something unexpected happens. People who decide to get this type of insurance never regret it, even if they don’t end up using it at all. It is much better to know that your insurance company will cover your medical expenses at least partially if something unexpected happens, and you should not risk not having such aid.

Even if your accident and critical illness insurance won’t cover absolutely all injuries or accidents you might encounter, some serious ones – a broken leg, a lost limb, serious laceration, accidental death, organ transplant, heart attack, a stroke, or even cancer – will be either partially or fully covered by your insurance company.

For this reason, given how common such accidents and critical illnesses are, we highly recommend that you get accident and critical illness insurance for yourself and your loved ones. We never know what might happen, but we do know that if it happens, it’s much better to have something you can rely on to help you out with your medical expenses and treatment costs.


McMaken, L. (2020). 4 Types of Insurance Everyone Needs. Retrieved from Investopedia website:


Ervin, D.M. (2021). Here’s Why Hospital Bills Are So High In The U.S. Health Care System. Retrieved from WFAE website:


Haak, D. (n.d.). Laceration: Definition, Types & Repair. Retrieved from Study website:


Chopik, W.J., Bremner, R.H., Johnson, D.J., & Giasson, H.L. (2018). Age Differences in Age Perceptions and Developmental Transitions. Retrieved from Frontiers in Psychology website:


Stephanie Wilson


January 28, 2022

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