What Is Supplemental Health Insurance?

Supplemental health insurance is a type of policy that covers the gaps not covered in your regular policy because of deductibles and co-payments. It is also designed to pay for things that your primaryhealth insurance does not cover, such as living expenses and lost wages. The people who need supplemental health insurance are individuals who are not prepared for heavy medical bills or time off from work as a result of sickness and injury, the self-employed, families with children, and those on Medicare.

Benefits

• Some of the benefits of supplemental insurance depend on the type coverage you choose. Some policies will pay cash benefits directly to the insured. Some cover lost wages and living expenses. Supplemental health insurance is usually low-cost due to the amount of coverage that you have. Many seniors opt to carry a supplement to take care of the gaps in Medicare.

Medicare Supplements

• Medicare supplements take various forms, depending on the gaps in Medicare you want to cover. Many will pay the deductible for being admitted to the hospital. They may also pay for extended nursing care, a certain number of days in a nursing facility and prescription drug coverage, along with other options. These items can be very costly to seniors without the supplemental coverage.

Hospital Indemnity Plans

• Hospital indemnity plans are supplemental policies that will pay a stated amount if an individual is hospitalized or receives outpatient care. Insurance proceeds are usually paid to the individual, regardless of how much the primary insurer has paid the hospital.

Cancer Policies

• Cancer policies are supplemental policies that pay off if an individual is treated for cancer and related services. In addition to certain amounts paid for the services, some policies also pay an additional lump sum dependent on the amount of time the policy has been in effect.

Critical Condition or Illness Policies

• Critical condition and illness policies usually pay a lump sum once the insured has been diagnosed with certain life-threatening illnesses. These include heart attack and stroke.

Long-Term Care Insurance

• This is a type of supplemental insurance policy that pays in the event the insured needs long-term care. Depending on the type policy purchased, it may pay for assisted-living facilities, nursing homes, home health care and adult day care.