What is Supplemental Health Insurance?

Do you already have health insurance? Have you heard of supplemental health insurance? Find out what this type of insurance is for so you can decide if you need it.

Supplemental health insurance is an insurance policy type that is designed to cover the gaps that may be a result of the deductibles and co-payments with your regular health insurance. As its name suggests, supplemental health insurance can cover what your primary insurance can’t, such as additional expenses from lost income and living expenses. Supplemental health insurance is recommended for families with children, the self-employed, those who are financially unprepared to pay and handle medical bills or time away from work because of an illness or injury, as well as those on Medicare.

Benefits for Seniors

There are many benefits that supplemental health insurance can give you and a part of these are the cash benefits. Some other benefits include lower costs because of lower benefit amounts, payment for pre-existing conditions and even the ability to offset lost income, which you can’t get in a traditional health insurance policy. Generally, the most common supplemental health insurance type is for those on Medicare as it does not cover long term health care, nursing homes, at home care or prescription drugs. A lot of seniors choose to carry a Medicare supplement together with a long term care insurance to protect their finances. However, these can amount up to 4,000 USD every year.

Although a lot of people associate supplemental health insurance with AFLAC, AFLAC is only one kind of plan that provides supplemental health insurance policies. There are other plans that provide cash benefits for other reasons as AFLAC primarily provides a cash benefit only to those who are out of work due to injury or illness.

Supplemental medical plans can provide fixed benefits to cover for preventative medical care in addition to hospital indemnity plans. These hospital indemnity plans basically provide fixed cash benefits for services such as hospital stays in emergency situations and other outpatient services. There are also specific types of supplemental plans such as supplemental cancer insurance plans that give out cash directly to policy holders for their cancer treatments and other expenses. There are also policies that give lump sum benefits in order to help the beneficiaries pay expenses for situations involving critical conditions or illnesses such as heart attacks, strokes, cancer, heart surgeries and others.

One of the most common cases wherein supplemental health insurance can be very beneficial is in accidents or calamities. Unexpected disability can be financially challenging for any family and it is because of this that disability income protection was made. This protection can help by providing a monthly benefit that the family can use to pay the bills. It is possible for the patient to lose his or her job and they may lose a major source of income because of this. Long term healthcare insurance can help cover the cost of long term care by helping with assisted living facilities, adult day care, medical home care and others. These are just some of the situations where policy holders can benefit from supplemental health insurance.