Unanticipated events can create a gap in your health care coverage, causing you to pay more expenses out-of-pocket. How can you help offset these expenses? Consider supplementing your current medical coverage.
Accidents, cancer, and disabilities may be a part of life. These unexpected events occur more often than we expect and can be very costly. Surprisingly, a large percentage of these costs may not be covered by major medical insurance plans.
Learning where traditional coverage gaps exist, why additional health coverage might be right for you and what's included in this coverage can help you make an informed decision on why you may need Supplemental Health Insurance.
Health Care Coverage Gaps
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Accidents—Most accidents happen outside of work, where you're not covered by worker's compensation or on-the-job disability.1
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Cancer—An average of 65% of cancer-related expenses are considered non-medical, which means your health insurance may not pay these expenses.2
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Disability—75% of disabling injuries happen outside of work, where you may not be covered by your employer. 3 And, only a third of people who apply for Social Security disability benefits are approved.4
Improve Your Financial Peace of Mind
If you're like most Americans, you may have to pay out-of-pocket for expenses and services not covered by Medicare or your insurance plan such as: prescription co-payments; preventative care; indirect costs such as transportation, over-the-counter medication, daycare or sitters and extra help around the house; non-medical expenses such as mortgage, car and credit card payments. These expenses can add up quickly, and in some cases, can deplete your savings and assets.
Supplemental Health Insurance can offer flexibility allowing you to make choices about your individual insurance needs. Other types of supplemental insurance include Accident, Cancer and Disability coverage. These plans pay most benefits based on a medical event, and unlike traditional medical coverage, the benefits don't have to be used exclusively for medical treatment.
For example, a supplemental cancer policy with a $200 a day benefit could help you if you're hospitalized for cancer treatment. This benefit payment is not limited to medical costs, such as helping to pay for the hospital room. It can allow you the freedom to use the payment to suit your own circumstances, such as covering additional child care costs, making a car payment or putting money in the bank. Supplemental health insurance can improve your financial peace of mind by providing a safety net for non-medical expenses not included in major medical coverage.
Supplemental Health Insurance Might Be Right For You If You:
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Are required by your primary insurance to pay high yearly deductibles, make expensive co-pays, or place low caps on the amount covered for certain services and products
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Lack disability coverage, which would pay your bills and lost wages if you were to be injured off the job or became chronically ill
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Are at high risk for developing cancer, heart disease or other serious illnesses that would require expensive medical treatment
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Belong to an HMO or other managed plan that won't cover out-of-network services or certain procedures, such as experimental cancer treatments
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Don't have an emergency fund that would cover at least three months of living costs
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Want to protect the savings and assets you have
Where to Get Supplemental Health Insurance
Generally, you can get supplemental health insurance from:
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Work—Supplemental insurance is sometimes offered through your employer. Occasionally, employers pay supplemental policy premiums. Ask your company's human resources or benefits manager if it's available at work.
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Professional or social organizations—Credit unions, labor unions or other membership organizations such as AARP (American Association of Retired Persons) may offer certain kinds of supplemental insurance to its members at a reduced cost.
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Insurance companies—Talk to your insurance agent or financial professional about whether you need a supplemental health policy and if your insurance company offers a policy that meets your needs.
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Internet—If your insurance company doesn't offer what you need, search the Internet and compare what different insurance providers have to offer in terms of coverage and cost.
