Basics of Supplemental Health Insurance

Supplemental health insurance provides policy holders with a cash benefit that can be used for any expense. Your plan determines how much cash you receive and in which circumstances. Learn more as you decide if this coverage is right for you. 

What Types of Supplemental Health Insurance Exist?

You can choose from a variety of supplemental health insurance plans. The most popular policies include:
Accidents: Suffer an accident at work, at home or on the road, and you'll receive a cash payment. 

Accidental Death and Dismemberment: Your dependents will receive a cash benefit if you die or become disabled. The policy will outline the specific disabilities it covers. 

Disease specific: Contract cancer or another disease that's covered by the policy, and you can use your supplemental insurance to provide a per-day or per-procedure payment. 

Hospital indemnity: If you're admitted to the hospital, receive a payment every day, week or month. In most cases, you have to meet the minimum stay requirement. 

Do You Need Supplemental Coverage?

Before you buy a supplemental policy, make sure your primary health insurance policy is adequate. It should cover basics like medical and emergency care, specialists, medication and therapies. Then, consider supplementing it with additional coverage based on your budget, health and risks. 

Budget: If you don't have enough money saved to cover six to 12 months of household expenses, boost your emergency savings account or invest in supplemental coverage. Only purchase supplemental coverage if you can afford the premiums, though.

Health: Of course, accidents can happen to anyone at any time, but you're more likely to use your supplemental policy if you're in bad health. 

Risks: Engaging in a risky career or hobbies increases your chances of getting hurt. Strongly consider supplemental insurance in these cases as you provide for yourself and your family. 

Is a supplemental health insurance policy right for you? Talk to your insurance agent for more information and for details on a policy that fits your needs. With the right coverage, you can enjoy financial peace of mind.
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