As you probably know, health insurance is something just about everyone should have (and something most people do have). But sometimes people opt to purchase additional, or supplemental, insurance that goes beyond their traditional insurance.
Supplemental health insurance, like its name implies, is something that is used to help supplement an existing major medical policy with more financial coverage. It is voluntary coverage, and is often offered by employers to their employees. It can also be “bought in a private marketplace, from an agent, or directly from a supplemental insurance company,” according to healthmarkets.com1.
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.
There are many different options to choose from when considering supplemental health insurance, including the following types of products:
- Intensive Care
- Critical Illness
- Hospital Indemnity and
Benefits vary by policy, and can help cover costs associated directly with treatment or may provide for a single cash payout.
Supplemental health insurance could be a great way to provide additional coverage for yourself or your family, but if you are shopping for a policy with a limited income, there are a few things to consider.
When you’re on a budget, you already know you want to spend your money wisely. That’s why before purchasing a supplemental health policy, you should consider your (and your family’s) personal circumstances.
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.” Thebalance.com goes on to state that it’s up to you to determine if the benefits of a policy are worth the cost of premiums; an example 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”2.
Verywellhealth.com invites supplemental health shoppers to ask themselves these financial questions:
Will my health plan cover treatment cost if I or my family gets into an accident or gets a serious illness?
Can I cover out-of-pocket health costs and expenses incurred if I’m out of work for an extended period of time?
Does the cost of supplemental insurance seem sensible?3
The bottom line is, when you’re shopping on a budget, you always want to consider the cost-to-benefit ratio. Shop around and make sure you’re getting the most bang for your buck, and if you have any questions, speak to a financial advisor or a licensed insurance agent about the best options for you and your family.