With employers cutting back on labor and benefits, supplemental health insurance has taken on new importance to individuals.
Supplemental health insurance policies are generally less expensive than regular health insurance plans. Although the lower cost is directly attributable to the lower benefit amounts, these benefits can make a big difference.
For example, in addition to medical and hospital coverage, supplemental health insurance policies pay fixed cash benefits for emergencies, outpatient services and preventive care. There are also policies that cover benefits for specific conditions such as cancer, heart attacks, strokes and other illnesses. Supplemental disability income policies help guard against the loss of income due to illness or injury by providing a monthly benefit to help pay bills. And supplemental long-term care insurance policies can provide coverage for payment of nursing homes, assisted-living facilities and adult daycare costs.
Unlike most regular insurance policies, supplemental insurance plans pay benefits directly to the policyholder. And the benefits are paid in cash to be used at the insured’s discretion. Benefits are also paid in addition to other insurance coverage and regardless of pre-existing conditions.
Although the maximum coverage is generally less than that of regular insurance plans, supplemental policies can be a nice addition to coverage with traditional insurance plans.