Supplemental Health Insurance Explained

Unless you’re extremely fortunate, your health plan probably doesn’t cover everything you want it to. Whether that gap falls in the area of dental, vision, income protection or the coverage offered by Medicare, the costs of having to pay for healthcare you aren’t covered for can add up quickly.

Supplemental health insurance plans are designed to plug those coverage gaps. They allow you to customize your health insurance to suit your needs. For instance, if you are the only wage earner in your household, an income protection plan might be practical. If there’s a history of cancer in your family, purchasing a cancer insurance policy might be a prudent idea.

Why You Might Need Supplemental Health Insurance

Does your current plan require a high yearly deductible (the amount you pay before your insurance covers the bills)? Expensive co-payments? Does it provide little reimbursement in the area you need help (dental, vision, etc.)? A supplemental health plan may be what you need.

Consider a supplemental health plan if:

• You have substantial savings or assets (a small business, etc.) that you need to protect.
• You don’t have disability insurance coverage.
• You have a family history of heart disease, cancer or other serious chronic illnesses.
• You’re a member of an HMO that doesn’t cover out-of-network services.
• Your family doesn’t have an emergency fund that could cover three months’ worth of household expenses.

What Kinds of Supplemental Health Insurance Plans Are There?

• Dental Insurance: Provides coverage for your preventative dental care needs, dental X-rays and the treatment of dental-related issues.
• Vision Insurance: Provides coverage for optometrists’ visits, eyeglasses, contact lenses and eye-care products.
• Cancer Insurance: Will cover the costs associated with cancer treatments as well as other related expenses, including: chemotherapy, surgery, radiation, anesthesia, and preventative care.
• Critical Condition Insurance: Will provide you with what’s known as lump sum benefits to help pay your out-of-pocket expenses after a heart attack, stroke, heart surgery, cancer episode, or similar sudden illness.
• Income Protection: Provides benefits that will provide you with income if you were to become totally or partially disabled. It may also provide a daily benefit if you’re hospitalized for a covered illness.
• Emergency Recovery Insurance: Will provide benefits for outpatient treatments for covered conditions (in-patient hospitalization, emergency room treatment, intensive care, outpatient surgery, recovery care, etc).
• Long Term Care Insurance: Covers the costs of various long-term care issues (nursing home care, assisted living facilities, home healthcare, custodial home care, adult day care, bed reservation, respite and hospice care, emergency response care, caregiver training, cost-of-living adjustments, etc.).
• Medicare Supplement Insurance: Mainly for those aged 65 and over, and participating in Medicare. There are a variety of standardized health plans designed to supplement expenses that aren’t covered by Medicare.