30 Aug Supplemental Insurance – What it is, What it Covers and Do You Need it?
So you’ve purchased health insurance, and feel comfortable with the coverage it provides. But what about the exclusions and gaps it leaves behind? For some, this gap is fine! Maybe they have the finances to feel comfortable without it, or are confident in their health status. For others, these cracks equate to standing on a trap door, hoping that it never opens. If you feel like the latter, supplemental health insurance may be the safety net that keeps you from falling into sudden financial distress.
What You Should Know About Supplemental Insurance
Supplemental insurance is an add-on ‒ not a replacement for comprehensive health insurance. It provides cash payments directly to you, and helps you cover out-of-pocket expenses not covered by your primary insurance policy. This can include deductibles, co-payments and coinsurance, as well as lost wages and other financial impacts. Depending on the type of plan, you may be paid in one lump sum amount, or over an extended period of time.
When it is time to purchase, there are a few facts that you should not overlook. One being that supplemental insurance rates have a tendency to increase as you age. This means that by the time you would be statistically likely to need the benefits, you may no longer be able to afford the policy. Your Strassman Insurance Group agent can discuss with you how much your rate can change, and help you make a well-informed decision about when (or if) to add the coverage.
Next is the detailed information spelling out specifics about the policy. Again, discuss any language that you don’t understand, or that seems ambiguous, with your agent. Being clear on the conditions of your coverage will prevent misunderstandings that could prove expensive at a time when you’re least able to deal with the situation financially or emotionally. Finally, make sure it does not overlap your major medical health coverage. Your agent can identify any potential overlaps.
Why You May Need Supplemental Insurance
The assistance provided by supplemental insurance can be very beneficial, but it is not for everyone. Before purchasing this type of policy, you should determine if it is worth the cost. Consider these two questions: What is my likelihood of being in an accident? Does my family have a history of critical illness, and is it prevalent? If you have an increased risk for these events, ask yourself: If either occurred, could I cover the out-of-pocket expenses by myself, on top of my present living expenses? If the answer is no, then you would likely benefit from supplemental insurance. It can also close the gap left by employers who do not offer such coverage as vision and/or dental.
Types of Supplemental Insurance
- Disability – If you or a family member are diagnosed with a covered illness, or experience an off-the-job injury, it will provide cash to protect your finances.
- Accident – In the case of an accident, it will help pay the cost of out-of-pocket co-pays, deductibles and treatments.
- Cancer – With a cancer diagnoses, or other covered specified disease, cash payments will be provided to assist with expenses and treatments as they occur.
- Critical Illness – If you or a covered family member are diagnosed with a covered critical illness, it will pay a lump sum of cash to cover expenses.
Every family has unique needs that should be addressed on an individual basis. At Strassman Insurance Group, we can inform you about all of our supplemental insurance plans, and ensure that you understand your options to the fullest. Contact us today to speak to one of our agents. We are ready to work with you to assess the type of protection that offers the best security for your income and standard of living.