Financial impact of an accident

An injury can happen to anyone at any time. We’ve all heard it, but what would that mean for you or your family? Have you thought about the financial impact of an accident? A 2014 study found that medical bills, a lost job and illness or injury of self or a family member were the primary reasons for bankruptcy.1 There are two main ways an accidental injury can affect you…and your wallet.

Medical costs

This is the main one. Everyone knows how expensive a visit to the emergency room can be. There’s ambulance rides, copays, treatment costs, rehabilitation costs…the list goes on and on. No matter the injury, if you have to go to the hospital, you can usually expect a hefty bill to follow. For example, did you know that an ambulance ride can cost $224-$2,204? And your insurance may not cover it at all.2 How about this one: the average cost of an emergency room visit can be anywhere from $50-$20,000 depending on the severity of your injury and your health insurance.3

Lost wages

In some cases, an injury may prevent you from being able to work while you recover. And unless your injury happened on the job, Worker’s Compensation doesn’t apply. Now think about your expenses: your rent or mortgage, utilities, car payments, groceries, gas or transportation fare, student loans. All of these will need to be paid while you’re out of work, in addition to that large medical bill you just were handed.

So what can you do to offset the financial impact of an accident?

Start an emergency fund.

If you don’t already have one, now’s a good time to start! Even if it’s just a few dollars a month, every little bit will help. Ideally, you want to have about 3-6 months of expenses saved, plus a little bit extra for any emergencies (like those medical bills).

Be careful.

Accidents happen to everyone. Some things are just beyond our control. That being said, there are things you can do to help prevent them. Simple things like taking your time, using appropriate safety gear or not driving while distracted can help keep you and your loved ones safer. Check out our tip sheet for winter accident prevention!

Get Accident Insurance and Disability Insurance.

Accident Insurance pays cash benefits directly to you, regardless of any coverage you have. It can help pay for initial care, injuries, treatment, facility care and follow-up care. It even offers a sports package that pays additional benefits if you’re injured during an organized sport.4 Want to know more? Visit our Accident Insurance page.

Disability Insurance provides benefits that replace part of your lost income. You’ll get tax-free income5, paid directly to you monthly, allowing you to go live life with some peace of mind. Get more info on our Disability Insurance page.

It can be hard to deal with an accident, no matter what the circumstances. However, a little bit of planning today can go a long way tomorrow.

1 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2515321
2https://www.gao.gov/assets/650/649018.pdf
3https://www.thebalance.com/average-cost-of-an-er-visit-4176166
4See policy for details
5Under current tax laws when entire premium is paid by the insured. Please consult your tax advisor.