News flash: Insuring body parts isn't just for celebrities. However, the cost of doing so does put it out of reach for most average Joes.
If you've picked up a celebrity gossip magazine or caught a celebrity television show, you've heard about it before: Celebrities buy insurance policies for specific body parts. You’ve probably heard of singers insuring their vocal cords, athletes covering their arms and legs, and supermodels insuring facial features.
If you've been wondering whether you can insure a body part, the answer is yes. But it isn't through your typical insurance company, nor is it a standard policy.
Insurance for Specific Body Parts Is for Those Who Have Body Parts That are "Assets"
Insuring a specific body part seems like something celebrities do to get into the news. But this type of policy makes sense to the people who can afford to buy it.
The purpose of body part coverage is to supplement lost income if a body part is damaged, injured, scarred, handicapped, or lost. For example, Holly Madison, a former Playboy model, insured her breasts for $1 million. Her reason: They're her assets. If something were to happen to them, she could be out of work for months.
For that reason, they're well worth the $1 million policy, considering how much money she could potentially lose. The same applies to any other body part insurance policy.
Body Part Insurance Isn't Only for Celebrities, but It May Make More Sense for Celebrities
Because body part insurance isn't offered by standard insurance companies and is highly personalized, it's not accessible to the general public. But if you can afford it, there's no reason why you can't buy it, too!
Specialty insurance providers, like Lloyd’s of London, will insure body parts. Most policies are created from scratch, specific to a person's needs. This personal attention, coupled with having to purchase from a specialty provider, can result in a premium that is not affordable for many folks.
However, Business Owners Purchase Specialty Body Part Insurance Policies
Business owners look to body part insurance policies to help keep the business open if their ability to do so is compromised due to a damaged body part or function. A chef or wine expert who loses the ability to taste or smell could easily lose their business and livelihood if those senses were compromised.
Some insurance companies offer coverage for “death and dismemberment” resulting from an accident. While not as glamorous as a policy on a movie star’s legs, this is a more affordable way for people to supplement income if they lose a body part and can't work.
However, for such a policy to apply, a body part typically must be lost. This means these policies usually don’t cover lost income due to injury or slowdown.
The Bottom Line
If you're a business owner, you may want a body part insurance policy so your business doesn't shut down due to an accident. Otherwise, body part insurance policies are unnecessary and too expensive for many people.
Maybe it's best to stick to reading about the next celebrity body part insurance policy, and leave the rest of your insurance needs to your Trusted Choice agent.