Accident insurance vs. comprehensive deductible insurance

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May 29, 2014 by Tony Novak

I presumed that as soon as comprehensive Obamacare supplemental insurance policies entered the market, the small separate supplemental insurance plans like cancer coverage, accident medical and prescription drug insurance plans would drop in popularity. I was wrong. Online enrollment at has increased in each of these types of coverage in 2014 and accident supplement insurance became the #1 most popular coverage selection for the first time in May.

This post is meant to flush out some of the possible reasons that are mostly still a mystery to me. It is meant to be more of a working checklist and not a completed publishable article.

Possible reasons to elect accident supplement insurance:

1. It is cheap; perhaps the least expensive type of medical expense insurance.

2. The perception that accidents are likely and would be expensive.

3. Perception that comprehensive supplemental insurance requires an underlying qualified (Obamacare) coverage.

4. Buyers don’t understand the limited range of coverage in these policies.

5. For those without health insurance, some type of limited coverage is better than nothing at all.

6. Perceived as on-the-job coverage for those not covered by worker’s compensation.

7. Might be paid by an employer (we know of farms that do this for their short term farm worker employees).

Possible reasons to elect comprehensive supplemental insurance:

1. It covers a wider range of risks.

2. Can cover 100% of out-of-pocket risk let by a qualified health insurance policy.

3. Is more likely to be reimbursed by an employer under a tax-free benefit plan.


Similarities between both types of coverage:

1. Both are immediate issue.

2. Both are issued online.

3. Both are guaranteed issue regardless of pre-existing medical conditions.

4. Both are available through reputable carriers.

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