Optional accident benefits can be confusing for a lot of people. Hence, only a few policyholders buy them. Although these policies are optional, they save you money and also reduce your stress in the event of an accident.
In case you are curious about this policy as well as the benefits its offers, you can visit https://www.aronfeld.com/auto/ to speak with a professional auto accident attorney.
Meanwhile, in this post, we will also be discussing what the policy entails and the different types of optional accident benefit available. So read on.
What Are Optional Accident Benefits?
According to the Statutory Accident Benefits Schedule (SABS), optional account benefits provide coverage for everyone that sustained an injury in an accident, irrespective of who is at fault. The benefits range from lost wages, healthcare, attendant care benefits, and funeral expenses.
Optional benefits are accessed via the injured party’s mandatory car insurance policy. The type of optional benefit, the cost of medical treatment, and the severity of injury determine the quality of the benefit. To avoid being under-compensated, it’s necessary to understand the optional benefits you’re buying and their limits.
Types of Optional Benefits
Income Replacement Benefit
If you’re involved in an accident that has hindered you from going to work, the income replacement benefit gives about $400 to the victim per week. Sometimes, it gives about 70% of your gross income, depending on which is less.
You’re eligible for this benefit till you reach the age of 65 and may also continue at a reduced rate after the age of 65. However, you must have no other long-term policies, like a disability policy. The income replacement benefit is ideal for you if you make above $20,800 per annum.
Death and Funeral Benefits
Sometimes, car accidents lead to death. In such cases, the death and funeral benefits give a sum of $6,000 to cater for the funeral expenses, $10,000 to each of your dependents, and $25,000 to your spouse.
You can also increase the payment to $8,000 for funeral expenses, $20,000 for each dependent, and $50,000 for your spouse. This benefit is ideal if you are the sole breadwinner and have dependents and a spouse that may have financial crises in the event of your demise.
Medical and Rehabilitation/Attendant Care Benefits
If you’ve been involved in an accident, medical and rehabilitation benefits fund your medical treatments like massage therapy, physiotherapy, psychological counseling, and exercise rehabilitation. The attendant care benefit also pays for professional services, such as a personal support worker that will help you recover quickly.
The policy gives about $1,000,000 for catastrophic injuries, which is available for life, $65,000 for non-catastrophic injuries, and $3,500 for minor injuries, which is available for a maximum of five years. This benefit is ideal for everyone. You can also increase the benefits depending on your capacity.
Housekeeping and Home Maintenance Expenses
The housekeeping and home maintenance benefits are available to anyone involved in a serious accident that led to a catastrophic injury. Under this benefit, the victim receives about $100 weekly for a lifetime to assist with home maintenance and professional housekeeping. The benefit is ideal for individuals who are majorly responsible for the maintenance of their homes.
Dependent Care Benefit
The dependent care benefit is purely optional; hence it’s not included in the standard policy. It compensates for other expenses that may arise while caring for your dependents. This may include hiring babysitters or child care. In this benefit, you receive about $75 for the first dependent weekly and between $25 to $150 weekly for other dependents for a lifetime. This benefit is ideal for you if you’re employed and are the sole caregiver for your dependents.
How to Make People Buy Optional Accident Benefits
Many people are unaware of the importance of optional accident benefits, hence, they buy the standard no-fault accident benefits coverage, which is not enough to protect you in the event of a catastrophic injury. Below are some ways to make people buy the optional benefits:
- Insurers and brokers should educate policyholders on the need to buy optional benefits.
- The government should increase the catastrophic benefits to a limit of $2M instead of the initial $1M.
With the different optional benefits available, it is easy to be confused about the ideal benefits for you. However, ensure you contact your insurer or brokers for a breakdown of the optional benefits available to you.