Supplemental health insurance, simply put, is additional insurance that you are able to purchase that will help pay for services and other out-of-pocket expenses that your regular insurance will not cover. Some of the supplemental plans pay for out-of-pocket expenses, deductibles, copayments, or loss of income.
To better answer your question, there’s a little more to consider. Do you travel often? Is there a history of serious illness in your family? Are you prone to sickness or disease? These are all extremely important things to consider. Although insurance is a cost that none of us enjoy paying, you may end up saving yourself thousands of dollars in the long run by picking up some supplemental coverage.
Medigap is by far the most common type of supplemental insurance, and is sold to people enrolled in Medicare by private insurance companies. Surely you’re familiar with original Medicare, which consists of Part-A Hospital Insurance, and Part B Medical Insurance. Although this does plan does cover many health-related services, it doesn’t cover all of them. This is where Medigap comes into play- to cover what is not paid for by Medicare. This is especially important if you travel outside United States because medical emergencies or occurrences overseas are not likely to be covered by many of the health services that lie under traditional medicare policies. Medigap Is simply meant help pay down what is left due after Medicare has been applied to your medical costs.
The three most common types of supplemental insurance outside of Medigap policies are critical illness insurance, accidental death policies and hospital indemnity insurance.
Critical Illness Insurance
Critical illness insurance can be used to cover deductibles thanks parent treatment travel out of network specialist living expenses childcare and household help if you are based with a serious illness such as cancer. This type of insurance can provide lump sum cash benefit that will help pay for was not covered the Traditional health plan coverage
Accidental Death Policy
This term is broken into 2 parts- Accident Health Insurance, and Accidental Death & Dismemberment Insurance. Not the most fun to talk about, but good to be aware of. The accident health insurance policies, which are sometimes referred to as accident hospital indemnity policies, may pay for the costs that you incur resulting from accident where your traditional health insurance will not pay the full cost. In addition, these policies will sometimes cover the costs of accidents where there is not loss of life, but resulting in damage to eyesight, losing a limb, or permanent paralysis. This coverage in some circumstances may even pay for travel and lodging expenses for your family.
Hospital Indemnity Insurance
Otherwise known as Hospital Confinement Insurance, this coverage is to aid in the even that you’re confined to the hospital as a result of a serious illness or injury. The payout does come as either a cash lump-sum, or daily to weekly payments (but there may be a waiting period before the first payments are issued).
We’d all like to think we are never going to need this type of insurance. But the truth of the matter is, as well get older, as we lose our familiar and trusted coverage, we’re at an age where accidents and illness are more likely to occur than ever. That is why if it is at all financially possible, it is an extremely smart bet to get some supplemental coverage. Just ask your local 70 year old if they have supplemental coverage, or if they’ve had to pay more than they thought was fair out of pocket as a result of trusting in the standard Medicare policy. What you may find will likely not come as a surprise upon further reflection.
We’re always here to answer your questions and get you on the right path to coverage that you will feel secure with. Just give us a call at 805-201-8058 and ask for Eddie- and you’ll have taken the next necessary step in protecting yourself and your family.