Supplemental Health Insurance
What is Supplemental Health Insurance?
A supplemental health insurance plan is a health care plan that covers anything above and beyond minimum essential medical coverage. Supplemental health plans can provide added medical coverage, or can also be purchased to contribute to paying the costs not covered by the basic health insurance plan, such as co-insurance, co-pays and deductibles. It all depends on the type of supplemental health insurance plan you are looking for.
What to Consider When Choosing a Plan
Your health risk factors
Your savings
How much insurance you can afford
Your savings should play an important role in your decision to purchase a supplemental health insurance policy. If you were in the hospital for a few weeks or more, would you have enough to cover your other expenses that your insurance would not? Do you have money that you can access through an HSA or FSA? When deciding on purchasing a policy, you need to take into consideration if you can afford it or not.
Understanding Supplemental Health Insurance Plans
Do you need supplemental health insurance plans if you already have health insurance? That depends on your risk factors and how much insurance you want. Supplemental plans are optional. It is entirely up to you to decide if the benefits provided by a plan are worth the cost in premiums that you will pay.
For Example, if you know that your children will need insurance to cover orthodontic care in the incoming years, buying a better dental plan to supplement your benefits will allow you to get them better treatment in the case they require amenities like braces. You may decide if a supplemental dental insurance plan may be worth it for you in such circumstances.
Another example, if you know that you could not afford the costs of long term care, or the loss of income if you were diagnosed with cancer, then long term care or critical illness insurance may be a good investment for you to consider.