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Need Help Filling in the Financial Gaps? Your Guide to Supplemental Health Insurance

Sometimes your health plan leaves gaps that you can’t cover. Like dental. Need help filling in the gaps? Check out these tips for supplemental health insurance.

Did you know that the average couple over 65 will spend around $280,000 on health care?

Is supplemental health insurance a good investment? In this guide, we are going to discuss why having extra coverage is helpful. Many times, insurance doesn’t cover everything we need.

Want to learn more? Keep reading to find out!

Supplemental Health Insurance: A Guide

Having extra insurance can help you cover out-of-pocket expenses.

It’s important to consider if this might be something you should get for your own family. Having a supplemental plan could also provide you with a cash benefit paid out over time. You may also be able to get it in one lump sum.

This cash’s used for transportation lost wages or medication.

Popular types of coverage are vision, dental, accident, and critical illness insurance. Vision and dental plans cover eye exams, eyeglasses, contacts, and teeth cleanings.

Costs of these insurances vary, but they tend to be inexpensive compared to paying the bill if you get hurt or sick.

Medigap Insurance

Medigap is common supplemental insurance. It’s sold by private companies for people enrolled in Original Medicare. You must already have Medicare Part A. This helps cover hospital services. Medicare Part B covers doctor services.

You’ll need both of these before buying Medigap policies.

This type of insurance could cover out-of-pocket costs you’d incur. It all adds up. It doesn’t include dental or vision care, hearing aids, or eyeglasses. It pays health care costs like health care out of the U.S. and deductibles.

So what is Medigap and what does it cover? It only picks up the out-of-pocket costs for services. Some Medigap policies will pay for certain health services outside of the U.S.

You pay a monthly premium for this policy. It only covers one person. If you and your partner want coverage, you’ll both need to buy one.

Accidental Death Policies

Accident health insurance and accidental death and dismemberment insurance (AD&D) are helpful. These two policies are often sold together. The benefits vary from state to state.

Accident medical insurance may cover costs not covered by your regular health insurance.

Things like travel, lodging, and extended home care services for family’s included.

An AD&D policy pays a lump-sum cash benefit if you’re named a beneficiary of the person who has passed away in an accident. These policies might pay small amounts if the person lost their eyesight or a limb.

This insurance does not cover death by natural cause or death by illness.

Accident supplement policies are popular with healthy people who have high-deductible insurance plans. It provides a backup plan in the event of an accident.

Hospital Indemnity Insurance

This insurance is also called hospital confinement insurance. It provides a cash benefit if you’re stuck in a hospital due to a severe injury or illness.

The cash benefits release either a weekly payment or one lump sum. It may not start until after a certain waiting period.

This coverage’s meant to help you pay for items and services not covered by a regular health plan.

Critical Illness Insurance

This insurance is also known as disease-specific insurance. It’s meant to ease up the financial weight from a severe illness like cancer.

These policies tend to provide a lump-sum cash benefit. This will help you pay for extra costs not covered by your regular health plan.

The coverage could cover things like deductibles, specialists, transportation, and lodging. If you need household or childcare help, it may include this as well. Car payments, utility bills, and groceries expenses may have payment coverage.

Do I Need Supplemental Insurance?

Deciding if you need extra insurance is a crucial discussion to have with your family.

If you are under 65 and don’t have Medicare, decide if you and your family have coverage with a standard health plan. If you think you do need supplemental insurance, ask yourself some questions.

If you and your family developed a serious illness or were in an accident, is your treatment covered?

Do you have a way to cover out-of-pocket costs if you had to be out of work for an extended period?

How likely will you or a family member develop a major illness? Does the supplemental insurance policy make sense?

Check your family’s health history. Is breast cancer prevalent in your family? You may need to buy a cancer insurance plan to prevent high medical bills.

Understand the benefits and limitations of the insurance before purchasing the supplemental policy. You may have to wait a period before the payments begin.

Some expenses won’t have coverage, and there could be a limit with how much you’re paid.

Do your children need orthodontic care in the future? Buy a solid dental plan that will supplement your benefits. This will free up the options for you to get them braces.

Where Do I Get Supplemental Insurance?

Private insurers sell most plans. Discuss with your employer to see if there are any extended benefits to your current plan at work. Sometimes you can add on supplemental benefits.

Some employers may include extended dental, vision, or short-term disability benefits.

If your insurance doesn’t offer this, check with your spouse or domestic partner’s insurance. You could go through their insurance for extra coverage.

Find out more about insurance in general. Read our article about life insurance.

Want to Learn More?

We hope you found this article helpful about supplemental health insurance. There are many types of insurance to buy, depending on you and your family’s needs.

Want to learn more about health? Read about how to save for retirement!


Jeff Campbell