iBest Health Insurance

Supplemental Health Insurance

Supplemental health insurance policies provide additional coverage that help consumers to pay for certain out of pocket expenses and other services that traditional insurance policies may not cover. Some supplemental insurance policies may pay a cash benefit over a specified time period or pay a lump sum while others will pay for certain out of pocket expenses like coinsurance, deductibles and copayments. Cash payouts can be used to cover certain out of pocket expenses such as medication, transportation to physicians’ offices and non-health related expenses like lost wages and living expenses that are the direct result of an injury or illness. Supplemental health insurance is designed to be used in addition to traditional health insurance policies.

Investing in a supplemental health insurance policy would be a great idea due to the added coverage it offers. Some of the main benefits of investing in this type of policy include coverage for income loss, cost of living, and more. For individuals on Medicare, families and self-employed workers, this is a great choice of health coverage to invest in. Even if you have a current health insurance policy it may be beneficial to invest in the supplemental coverage. Supplemental health insurance policies are typically inexpensive. There are fewer benefits with this type of health insurance policy so this leads to the lower cost of insurance premiums. One of the most common choices of supplemental health insurance policies is the Medicare supplement policy (Medigap) that is offered for seniors that are qualified for Medicare. This particular policy has higher insurance premiums though with annual costs in the mid four figure range.

There are many different types of supplemental health insurance policies and packages that you can invest in. For instance, there are indemnity packages that offer cash coverage on certain hospital-related costs such as outpatient and hospital stay expenses. There are also supplemental health insurance plans that offer coverage for cancer treatment and other relevant expenses to cancer patients. There are also supplemental health insurance policies that provide coverage for many expenses that are caused by a serious medical condition such as a heart attack or heart surgery.

MediGap is one of the most commonly chosen types of supplemental health insurance. MediGap is sold to people who are enrolled in Medicare and pays for health services that are typically not covered by Medicare policies. There are also three other types of supplemental insurance that are commonly chosen. These policies can be purchased in a number of ways including from an employer if your company offers it. Alternatively, you can purchase these types of policies through an insurance agent.

Critical illness insurance is designed to help ease financial burdens in patients who are diagnosed with specific long-term or serious illness like cancer. Critical illness supplemental insurance policies pay the insured a lump sum benefit for costs that are typically incurred when a serious illness occurs. These benefits help to offset medical expenses that are not covered by a traditional health insurance policy. Coverage can be used to pay a variety of expenses depending on the individual policy. Some expenses that may be covered by critical illness insurance include specialists not included in a specific network, deductibles, travel expenses for treatment, experimental treatments and typical living expenses such as food, utilities and other payments.

Accidental death insurance is another type of supplemental coverage. There are basically two types of accidental death coverage. These are Accident Health and Accidental Death and Dismemberment. Both policies are combined in many cases and sold together and benefits may vary significantly from one state to another.

Accidental death and dismemberment insurance pays a cash sum when the insured dies in an accident. This insurance also pays a smaller sum when an insured lives but loses limbs, eyesight or suffers a type of permanent disability or paralysis. The insurance does not pay however, for any death that is deemed a suicide or occurs as a result of illness or natural causes. Accident Health coverage is also referred to as a hospital indemnity coverage. This coverage pays for medical expenses that result from accidents which may not be covered by regular or more traditional coverage. Depending on the insurance carrier and the policy itself, benefits may also be paid for homecare services as well as travel associated with injury due to a specific accident.

Another type of supplemental insurance, and one that is becoming increasingly popular, is hospital indemnity insurance. This insurance offers a lump sum, paid in cash, benefit when the insured is hospitalized overnight due to injury or illness. The cash benefit is paid as either daily or weekly payments and is designed to help offset expenses that are typically associated with hospitalization. The benefit money can be used for any purpose chosen by the insured. Benefit amounts will vary from company to company and depending on which policy you choose. Benefits may be from $50 to $200 per day of hospitalization and some policies pay an extra amount if you are confined to the hospital for a specified number of days consecutively.

A serious medical issue arising can be financially devastating if any individual or family is not prepared for it with the adequate coverage. In many cases, a supplemental health insurance policy can provide the coverage necessary to help minimize the impacts that sudden illnesses or disabilities have. The coverage can help make up for any income that is lost and various medical expenses as well. If an individual were to become disabled and unable to work for an extended period of time then extended cash benefits may be provided on a monthly basis.

It is important to have some sort of guarantee that you will have some financial coverage in the event of a serious medical condition or injury occurring. The cost of standard health insurance policies makes it unattainable for many individuals and families. For a more cost effective form of health coverage it may be best to invest in a supplemental health insurance policy. This will most definitely give you a quality coverage that offers cash benefits for many circumstances that are not covered with many other types of health insurance plans.

It is a great idea for all individuals and families to have some health coverage. If you are looking for a policy to invest in that is not too expensive then the supplemental coverage may be your best bet. You will want to consider what type of coverage you desire, who will be covered on the policy, and what you plan to budget for insurance premiums.  Most individuals will find considerable benefits from investing in a supplemental health insurance package, even if they already have standard health coverage.

To get the best deal possible on a supplemental health insurance policy you will want to shop around. To do this you will need to look at the various fixed rate packages that are available or obtain quotes from various health insurance providers. You will want to compare your options based on the cost of premiums, what is covered, the cash benefits, and the terms and conditions of the policy. In closing, make sure you spend some time selecting the right supplemental health insurance policy so you get the optimal coverage for you and your family too.

Supplemental health insurance is meant to supplement and not completely replace standard coverage. While many of these plans can be very helpful in combating costs associated with injury or illness, having a standard medical insurance plan is crucial as supplemental plans simply do not pay enough to completely cover needed medical costs. When choosing a supplemental health insurance plan, it is important to fully understand any limitations on the policy itself as well as the benefits that these policies offer. You should know what limitations or waiting periods are in effect for your supplemental policy as well as the benefit amount and what injuries and illnesses are covered.

Related Information