Accident and Health Benefits
What it is:
Accident and health benefits are a package of benefits offered by companies to employees and their families covering illness and providing income benefits in the event of accidental death or injury.
How it works (Example):
Companies that offer accident and health benefits provide employees and their families with insurance that covers unanticipated health-related events resulting from either accident or illness. To this extent, accident and health benefits help to absorb, medical costs and provide fixed-income payments in the event of disability or death.
Why it Matters:
Accident and health benefits are mutually beneficial to companies and employees. While employees receive coverage in the event of unforeseen health circumstances, companies benefit from a tax deduction by making payments into such benefit plans on behalf of employees.