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

Accident policies are typically known as “indemnity plans,” which simply pay a fixed amount of benefit if you become injured by an accidental event. They have limited value and are a poor substitute for disability insurance.

A long-term disability policy is much more expansive, covering 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.