Supplemental Insurance is a protective benefit that complements any health insurance plan. Traditional insurance plans only cover essential medical costs over a specific duration. A supplemental health plan offers additional coverage in the form of copays, deductibles, and particular shares of insurance. Special circumstances such as accidental death, cancer, and dismemberment all fall under the category of supplemental insurance. Individuals who require extensive medical attention over a long period of time also qualify.
Supplemental Insurance by the Numbers
For older individuals, a supplement plan saves the user money after Part B deductibles are met. In 2018, that cost rose to $183 dollars for policyholders. Although traditional insurance policies pay on average for 80% of possible bills, there is still a hefty 20% left unpaid. Supplementary insurance can build a valuable bridge between the two, and provide necessary additional coverage. Medicare holders can apply for this form of insurance up to age 65. This covers all possible health concerns that Medicare does not cover.
In 2010, 9.7 million Americans reportedly had a supplemental insurance plan. Seven years later, that number drastically increased to 13.6 million. North Carolina reigns supreme with 447,342 individuals being covered by supplemental insurance. With the drastic changes to insurance policies and the relentless need for extensive medical care, the need for supplemental insurance plans is on the rise.
Although supplemental insurance plans are on the rise, are they necessary for every situation? There are a variety of lifestyle factors to consider when contemplating this addition. Supplemental insurance covers extensive medical care over time. First, consider the longevity of your medical needs. Will you need additional coverage on a consistent basis over the next five years? Have you been diagnosed with an illness that requires frequent hospital or doctor trips? Do you have a crippling disability that isn’t covered by your immediate health insurance plan? These considerations can shed light on whether a supplemental insurance plan is right for you.
In addition, there are supplementary lifestyle factors to consider when contemplating this decision. Often times, traditional insurance policies are expensive and not provided by every employer. Do you have the necessary income to support traditional and supplemental insurance? Taking into account your financial status will help determine if supplemental insurance is a viable option.
Supplemental Insurance Plans
There are on average 10 basic plans covered by supplemental insurance. However, there are three standout policies that are the most popular. Certain policies and costs may vary from state to state, but they all possess similar benefits. They are divided in alphabetical form from letters A to N. Various companies sell different variations to these plans, but the idea behind them all is future sustainability.
- Critical Illness
This type of insurance offers monetary benefits in the rare case that you become chronically sick. Policyholders will be paid in cash monthly to cover their necessary expenses. What’s awesome about this coverage is that it isn’t determined by your insurance payments. Rather, you are able to choose the right amount of coverage at a price that’s comfortable to you.
- Accidental Death and Dismemberment Supplemental Insurance
Medical costs that accumulate as a result of tragic accidents or even the loss of vital limbs is covered by supplemental insurance. Individuals are able to receive help without a medical exam and pay lower premiums for optimal coverage. This also covers potential accidents in the home, job, or car.
- Hospital Indemnity Insurance
Traditional insurance companies may only cover hospital stays at a certain minimum. Supplementary insurance plans, however, can cover extensive hospital stays that prevent you from paying your bills. Cash benefits are paid to beneficiaries in the form of daily, weekly or monthly. This money, predetermined by you, is used to cover outside nonmedical costs to sustain your lifestyle post-hospitalization.
Benefits of Supplemental Insurance
Setting possible cost aside, adding a supplemental insurance plan to your traditional policy is a wise investment for the future. With hundreds of quality policies to choose from, it’s definitely a valuable option that emphasizes additional security. It’s wise to consult with your healthcare agent to determine which supplemental income plan is right for you and how to apply. Let’s consider three solid reasons why adding supplemental insurance to your current plan is beneficial.
- Supplemental Insurance Offers Valuable Protection
Many people avoid planning for future situations simply because they are difficult to process. Nobody wants to consider the long-term psychological and monetary consequences that come along with cancer or other diseases. However, planning accordingly can lift a potential burden by providing coverage. Supplemental insurance plans cover extensive medical costs over a long period of time. If you know that you will need frequent doctor visits, copays, and deductible coverage, a supplemental plan may be a valuable option.
- Covering Costs That You Cannot
Imagine being hospitalized for an extensive period of time. Although your current world is at a halt, the accumulation of bills at home continues to grow. Facing the stress of your illness in addition to wondering how you can pay your bills is debilitating. In 2014, The American Cancer Society found that on average, 60% of the nonmedical costs associated with cancer aren’t covered by traditional health insurance policies. Supplementary insurance policies cover outside expenses that you cannot. Your rent, utilities, and even groceries are all covered under certain supplemental insurance plans. This helps to alleviate stress and ensure that your responsibilities are covered. In addition, when facing employment difficulties while undergoing treatment, supplemental insurance can provide additional income support while facing unemployment.
- Coverage for the Future
Should you face a crippling accident suddenly, supplemental insurance plans can offer sustainable coverage when the unknown occurs. This provides a cushion like support when the unthinkable happens. Should you lose your life or become extremely disabled, supplementary insurance policies can provide monetary support to beneficiaries left behind. Although contemplating the worst is unpleasant, it’s necessary when planning for the future.
Protecting your family and immediate needs is a wise solution to possible future threats. Although traditional insurance policies are helpful, supplementary insurance policies can provide the necessary cushion when the unthinkable arises.