Supplement: to add on, enhance, or add extra.

That is the definition from Webster’s dictionary (OK, I abridged the real definition, but that is what “supplement” means.)

My definition: to give you peace-of-mind from the unexpected, rising out-of-pocket costs of health insurance!

Years ago, supplemental health insurance wasn’t common. There were a handful of carriers that offered supplemental health insurance, but it was more for Medicare plans. Additionally, there were some basic hospital indemnity plans.

Now, many carriers offer supplemental health insurance…and all and many types. Why?

It’s simple. Your out-of-pocket medical expenses are through the roof, likely.

Do you have $1,000 to pay for a deductible? No? You don’t. Well, most Americans don’t have that kind of money to pay.

Enter supplemental health insurance to ease your purse and wallet and provide you with peace-of-mind.

Supplemental health insurance pays a cash benefit to you that you can use to pay for your deductible, copays, or anything you want.

Some plans will coordinate with your underlying health insurance, but many won’t.

I know what you are thinking.

Sounds great, John you say, But can’t I just save the money on the premiums?

 That is true. You can try. But, I know most Americans don’t. You won’t save this money.

Moreover, the benefits, if a covered event happens, likely outweighs and exceeds any amount of premium savings you could have achieved.

Supplemental health insurance is just pure peace-of-mind. Most plans can nearly cover all of your deductibles, out-of-pocket costs, and then some.

What do I mean by “and then some”?

These plans are usually indemnity plans, which means they pay a flat dollar benefit based on your contract, and that is it. They usually don’t coordinate with your health insurance or any other indemnity plan. You can use the money however you want.

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Example Of Supplemental Health Insurance

Here’s an example. Let’s say your deductible on your underlying health insurance is $1,000 and pays 100% of costs after the deductible is met. You break your leg. Let’s say your hospital indemnity plan and accident insurance (both supplemental plans) pay $5,000 to you. You use $1,000 to pay your hospital bill and then keep the $4,000 and use it for whatever you want.

That sounds pretty good, right? Good peace-of-mind.

Supplemental plans can be broken down into the following categories:

• hospital indemnity / GAP insurance
• accident insurance
• critical illness insurance
• cancer, heart, stroke insurance

We review all of these in the website and in our blog.