August 31, 2020 What is Supplemental Insurance?

The benefits of supplemental insurance.

Supplemental insurance is a separate policy covering specific areas that your regular insurance won’t cover. Some of the areas are dental and vision coverage, critical illness, hospital stays, and more.

The benefits of supplemental insurance help pay for deductibles, copays, and coinsurance. Also, the cash payment made directly to you can help cover your other expenses, such as your house payment, food, medication, and general everyday costs. Insurance payments are not income so that you won’t have the worries about added income taxes.

If You Already Have Health Insurance

Regular health insurance still covers most of your health care and services, and owning a supplemental policy has no effect on and is separate from regular health insurance. Payments from supplemental insurance plans are yours to spend how you see fit.

Coinsurance hits people hard, and an excellent supplemental plan can lessen the blow from expensive medical bills. Also, people with high-deductible health coverage appreciate having the peace of mind knowing they can pay most, if not all, of the deductibles required under their plan.

Types of Supplemental Insurance

Hospital indemnity insurance added to your regular health insurance plan pays a fixed benefit payment each day you’re in the hospital. The benefit period for this coverage varies, but one year is the typical timeframe.

Typical coverage for a hospital indemnity policy includes coverage for several services. Depending on the plan level chosen, you may have coverage for more. It’s best to ask questions and refer to your policy for the full list of coverages.

Hospital stays
ICU – Intensive Care Unit
CCU – Critical Care Unit
Doctor office visits
Emergency Room
Ambulance
Outpatient surgery
Outpatient X-rays
Lab fees

Accident insurance provides a lump sum payment designed to help cover what your existing insurance doesn’t. The benefits come to you unless you specify otherwise.

Critical illness insurance pays a cash benefit with a diagnosis of a listed major illness such as cancer, heart attack, or other conditions covered under this policy. Again, the cash you receive is yours to spend as you see fit.

Disability insurance pays you monthly benefits when conditions such as illness, accident, or injury prevent you from working for an extended period.

Long-term care insurance is there for you when you age, and helps protect your assets, giving you more options concerning your care.

Dental insurance is essential for your entire life. You must prevent damage to your teeth and gums by maintaining a schedule of dental well-being. Dental insurance requires a monthly premium, copayments, deductibles, and coinsurance.

Vision insurance usually includes coverage for preventative care for vision screening, checks for glaucoma, and cataracts. The protection typically contains provisions for more severe conditions, and most health plans don’t include this coverage. Some policies include coverage or discounts for popular laser eye-surgery, too.

Life insurance pays the policy beneficiary a lump-sum benefit in the event of a covered person’s death. This insurance also requires monthly premiums. Premiums for term insurance increase with age as the insured reaches each 5-year age bracket.

Where Can You Find Supplemental Insurance?

Most companies that offer health insurance offer supplemental plans, too. For others, such as dental, vision, and life, other companies provide very robust supplemental standalone plans not connected in any way to a health plan.

Check with licensed agents in your area or online. Insurance is vital to millions of people, and availability for any one of the plans listed here is vast. For that reason, competition keeps prices in check to keep them affordable.

Medicare Supplements

Many seniors worry day and night about their health expenses. That’s one of the reasons that Medicare supplement plans are popular. They provide excellent coverage by supplementing your existing Medicare coverage.

Typical features of a Medicare supplement plan include coverage anywhere in the USA, and you can use any doctor who accepts Medicare. Also, no referrals are necessary, and you can keep your current doctor. Another critical feature is that you will never lose coverage or see an increase in your premiums if your health deteriorates.

With any insurance you’re considering, carefully read, and ask questions of your agent or visit websites dedicated to your specific insurance questions. They offer detailed information you might not find elsewhere. It’s wise to learn what you can about supplement plans because they provide much-needed coverage when you need it most.

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