Do I Need Supplemental Health Insurance?

You’re already familiar with major medical insurance – the kind you use to help pay for your medical care. But beyond major medical insurance, there is the option of supplemental health insurance, which is sometimes offered as a voluntary benefit from an employer or offered directly through an insurance company.

Supplemental health insurance, like its name implies, can supplement an existing major medical policy with more financial coverage. There are several different types of supplemental health insurance policies, some of which are accident, cancer, and critical illness insurance. The benefits offered and amounts of the benefits vary by policy and provider, and some policies may pay a lump-sum benefit while others pay specific benefit amounts for various expenses.

Not everyone chooses to purchase a supplemental health insurance policy, but for many, it may be beneficial. If you’re wondering if a supplemental health insurance policy is right for you, you should examine your life, your health, and your finances. According to thebalance.com, whether or not you need supplemental health insurance “depends on your risk factors and how much insurance you want, or what you want to be insured for.” An example of someone who might need this type of insurance would be “if you know that you could not afford the costs of long term care, or the loss of income if you were diagnosed with cancer, then long term care or critical illness insurance may be a good investment for you to consider”. ¹

Some more questions to consider before buying a supplemental health insurance policy, according to verywellhealth.com, include:

• Will my health plan cover costs associated with an accident or a serious illness?
• Would I be able to cover the cost of being home sick or being out of work for an extended period of time?
• What are the chances that a family member or I will be in a serious accident or get a major illness?²

Verywellhealth.com goes on to note that before you purchase a supplemental policy, you should know all the limitations and the benefits of the insurance, and to contact your state’s department of insurance for direction if there is anything you do not understand about the policy.²

Sources:
¹ The Balance, The Basics of a Supplemental Health Insurance Plan, 2019
² Verywell Health, Should You Buy Supplemental Health Insurance?, 2019