Understanding Supplemental Health Insurance

Supplemental health insurance covers the expenses that regular medical insurance policies may not cover because of the deductibles and co-payments that have to be paid. These policies also cover the expenses that main insurance policies do not cover, such as loss of income and living expenses.

Who Should Get It?

These plans are geared towards those who are self-employed, towards families with children, toward those who are unable to pay huge medical bills and towards those who cannot afford to take long periods of time off from work for an illness or injury. It is also geared towards those who are on Medicare.

What are the Benefits?

There are many benefits to having a supplemental policy, which includes:

• cash benefits
• lower cost because of lower benefit costs
• unlike a traditional health insurance policy these polices allow for the balance of lost income
• often there is payment for pre-existing conditions

What Types of Supplemental Medical Insurance Are Available?

The most common type of policies are for those who are on Medicare, which does not cover long-term health care, at home, care, nursing homes, or prescription drugs.

Basic health insurance plans are among the most popular and least expensive plans. Almost anyone qualifies for this type of policy, which helps cover the most common medical expenses such as visits to the doctor's office and lab test fees. There are no deductibles or co-payments, so this policy is very beneficial if combined with other high deductible health insurance plans.

Before deciding on such policies there are several things to consider. One is if you are a high risk for serious illness, hospitalization or accidents. If so then this may be a policy for you. And you need to ask yourself if you can afford such a policy. If the answer is yes then you may want purchase a policy.

There are many policies, the following are three of the most popular:

• Disease Specific Insurance which provides a cash benefit paid to you if you require treatment for certain diseases such as cancer. Typically this is paid by the day or by the month. Usually, there is a minimum daily benefit and a policy maximum and you can spend the money any way you want.
• Accident Health Insurance pays for medical costs that are the result of accidents. Benefits are paid to you or to your beneficiaries if you should die from the accident. Only accidents that are covered in the policy are eligible for payment. Accidents that are eligible include car accidents and accidents in the home or at your place of work.
• Hospital Indemnity Insurance provides a daily, weekly, or monthly cash benefit for confined hospital stays. In most cases there is a minimum hospital stay before any benefits will be paid.

Supplemental health insurance is beneficial to many and should be seriously considered.

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