Supplemental Insurance Programs

Supplemental Programs

» Disability Income
» Accident
» Cancer Coverage
» Critical Illness Coverage
» Hospital Gap Coverage
» Dental Coverage

Supplemental health insurance is a type of insurance policy designed to cover the gaps that your regular health insurance may have due to deductibles and co-payments. Supplemental health insurance covers additional expenses that your primary insurance doesn’t cover, such as lost income and living expenses. Those who should consider supplemental health insurance are the self employed, families with children, those financially unprepared to handle large medical bills or time off from work due to illness or injury, and those on Medicare.

While some employers provide some kind of supplemental programs, most don’t and they are offered as a voluntary employee paid benefit. Usually, the employer will agree to use payroll deduction for premium payments.  Often, the premiums can be pretax income, which means the premiums are paid before any taxes are deducted.  This actually creates a saving for both the employee and the employer.

Some of the benefits of a supplemental health insurance policy include cash benefits, lower cost due to lower benefit amounts, the ability to offset lost income unlike a traditional health insurance policy, and often payment for pre-existing conditions. The most common type of supplemental policy is intended for those covered by Medicare, which doesn’t cover long term health care, at home care, nursing homes, or prescription drugs. Many seniors opt to carry a Medicare supplement in addition to long term care insurance, which protects their financial security. Unfortunately, these two supplemental insurance policies can run up to 4,000 USD annually.

Disability Coverage replaces some or most of an insured income in case of injury or illness.  This can be either on the job or off.  The most popular is off job coverage because Workmen’s comp will provide coverage for on the job injuries.  Short term disability, up to 24 months, is the most offered program because, if the disability is longer the Social Security will take over.

Accident Coverage pays a certain amount of money directly to the insured if he is injured.  The money can be used to pay medical or any other bills the insured has.  Because most hospital visits are due to accidental injuries, the best use is usually to pay the deductible for major medical programs.

Cancer Coverage pays a set amount directly to the insured if he or she is diagnosed with cancer.  It can also include coverage for rehab in an institution or even at home.  Two-thirds of the cost of having cancer is, not the medical costs, but the loss of income and special needs to recover.

Critical Illness Coverage is similar to the above cancer coverage, but covers a wider range of illnesses, such as heart issues, stroke, organ failure, as well as cancer.

Hospital Gap or indemnity Coverage is a special policy designed to cover the deductible for inpatient or outpatient hospital care.  This allows the insured to purchase major medical policies with higher deductibles, which can save on the monthly cost of coverage.

Dental Coverage is just what is implies and that provides some coverage for dental care.

Vision Coverage provides coverage for vision exams and, if needed, coverage for glasses or contact lenses.

NOTE: There is a very wide range of coverage and costs for supplemental insurance.  So much so, that it requires a comprehensive evaluation to determine just what any one individual wants or needs coverage for.