Understanding Supplemental Insurance Plans

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Millions of Americans have some type of health insurance, but in many cases, it isn’t enough to cover their medical expenses. A supplemental health insurance plan provides coverage that goes above and beyond the basic coverage in a typical health insurance plan. Everyone knows that they need to have basic insurance coverage, but many people are underinsured. A supplemental insurance plan can provide you with additional medical coverage that you would otherwise have to pay out-of-pocket in some circumstances. Supplemental insurance may also be available to cover deductibles and co-payments

How Supplemental Insurance Plans Work

A supplemental health insurance plan is not a stand-alone plan. It is coverage that is intended to improve or add to your basic health insurance. The policy covers costs and care that goes beyond what your main health plan includes. Some supplemental insurance plans are specifically designed for particular diseases or health issues. For instance, you may be able to purchase supplemental health insurance that covers cancer, accidental death or dismemberment, or accidents, to name just a few.  

Types of Supplemental Health Insurance

There are various types of supplemental insurance options depending on your needs. Some of the most common types are:

  • Disease-Specific

If you contract a critical illness, such as cancer, you will be able to obtain a cash benefit so you can get the treatment and care that you require. You will typically get a check so you can choose the best way to utilize the funds for your needs.

  • Accident

Accident, and Accidental Death or Dismemberment supplemental insurance offers benefits if you suffer a serious injury due to an accident. Accidental death insurance provides benefits to your loved ones. If you lose a limb, a finger or toe, or lose your vision due to an accident, you will receive a cash benefit.

  • Hospital Indemnity

This type of policy provides you with regular checks if you are unable to work due to a lengthy hospital stay. Generally, you must meet minimum hospital stay requirements before benefits begin.

  • Medicare Supplemental Insurance

Medicare doesn’t cover all the expenses associated with doctor and hospital care. A supplemental policy could help you pay the costs that are not paid for under the plan.

Health costs are rising at a rate of about 13% a year. The costs of ICU services are about 2 ½ times higher than regular hospital treatments.

Who Needs a Supplemental Insurance Plan?

Supplemental insurance is an option and it is not a requirement. It is best for people to have as much health insurance in place as they can reasonably afford. It is important to keep in mind that the costs of a supplemental plan will be much less than the astronomical costs that are associated with typical hospital care. This is particularly true in situations where the treatment is extensive and lengthy. Those who have basic medical policies that cover only the bare minimum in care should consider supplementing it with an additional policy.

Tips for Choosing Supplemental Health Insurance

It is best to choose a supplemental health insurance policy that best meets your current needs and your potential needs for the near future. Consider your particular circumstances and any conditions that you may be concerned about. Certainly nobody wants to think they will suffer a medical emergency or illness, but you should be prepared, just in case.

Think about your health risks and your age and your vulnerability to certain types of diseases. You will also want to review your finances and savings. If you suddenly become sick and require extensive medical care that isn’t covered by your basic insurance plan, will you end up depleting your savings or dipping into a 401K? You want to obtain a supplemental policy that will give you and your family peace of mind.

We are happy to assist you in choosing a healthcare policy that fits your needs and your budget. Call us today at 855-244-9579 for a free health insurance quote.