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Q: What is The Difference Between an Accident Policy and Disability Insurance?

2011 April 25

Accident policies are typically known as indemnity plans that just pay a fixed amount of benefit if you were to be injured by an accidental event.  They have limited value and are a very poor planning tool since people often substitute them for disability insurance and the plans are greatly different.

A Long Term Disability plan is much more expansive since it covers an income loss by either accident or sickness which greatly increases the value of the plan.In addition, a disability plan is typically broader in the situations that you are covered for and the benefit is tied to your income.

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