What Expenses are Supplemental Health Insurance Policies Designed to Cover?

As Americans, we know how important it is to have comprehensive health insurance. With the cost of medical care consistently on the rise, comprehensive health insurance is almost as essential to our wellbeing as good health care is.

But health insurance usually doesn’t cover everything, and individuals are often left with sizeable medical bills even after their insurance has paid a large portion of their medical expenses. According to a survey conducted by CompareCards in 2019, “one in three cardholders are in credit card debt due to medical bills.”¹

So how can you help financially protect yourself against future medical costs you may not be able to pay?

What is supplemental health insurance?

One option you have is to purchase supplemental health insurance. It is meant to complement your existing health insurance, and can help cover expenses you owe like deductibles, coinsurance, or copayments. Some supplemental health insurance policies offer a cash benefit, paid as a lump sum or over a period of time.

What are the types of supplemental health insurance?

There are many different types of supplemental health insurance policies out there, and depending on your health, your finances, and your personal situation, you want to find the supplemental health insurance policy that can suit all of your needs.

Some of the most common types of supplemental health insurance are critical illness, cancer, accident, and hospital indemnity insurance.

The coverage these polices offer varies depending on the type of policy, and there are many different insurance companies that offer such coverage. If you have a covered accident or illness, for example, the coverage could make a huge financial difference when it comes to the medical expenses you would incur. Be sure to research the options available to you and be sure to fully understand any policy – including its limitations and restrictions – you’re considering before you buy.

If you have any questions about supplemental health insurance, contact an independent broker or a licensed insurance agent.

References:
¹ CompareCards.com, 1 in 3 Cardholders Are in Credit Card Debt Due to Medical Bills, 2019
² Verywell Health, Should You Buy Supplemental Health Insurance?, 2020