It’s important you understand the value of supplemental insurance policies. You may have seen ads for Aflac insurance which covers costs that your health insurance doesn’t cover. The technical term for that type of coverage is “supplemental benefit.”
I don’t want you to confuse this type of supplemental benefit with a Medicare supplement. A supplemental policy includes dental or vision coverage or coverage for specific conditions like cancer or injuries from an accident. These supplemental policies are in addition to your major medical coverage.
The Value of a Supplemental Policy
If you’ve had medical problems or injuries, you’ve seen what the primary coverage is like. There are deductibles and out-of-pocket expenses. You may be limited to seeing only the doctors in your network. Whether you get your coverage from your employer or on your own, the costs for that primary coverage is increasing.
As those premiums increase, the deductibles and the out-of-pocket expenses also increase. If you are faced with an illness or injury, these supplemental contracts could have enough value to you that you should consider securing a policy of this type. Your health insurance pays basic medical costs but supplemental insurance helps with these other costs that can add up to several thousands of dollars.
Differentiating Supplemental Insurance from Basic Health Insurance
Note that this is supplemental insurance. Your coverage is for thousands of dollars of expenses, not hundreds of thousands of dollars of expenses. These supplemental contracts for situations like cancer, accident or even life insurance—they are not to be your primary insurance. Don’t use a supplemental policy as a primary insurance plan. They’re limited.
Your primary insurance should be your comprehensive major medical plan or Medicare plan. These supplemental policies are in addition to your major health insurance. Then you can coordinate your costs between these two types of policies to provide you with the greatest value.
Get Help Making Decisions on Supplemental Insurance Policies
This is a subject you should be able to talk over with a representative who works for you, not for an insurance company. You should be able to discuss your overall financial planning, your budget and your expenses with this representative. We would be happy to help you understand your choices and walk you through your decisions. Call us at (314) 544-5400 to learn about your choices and obtain just the right supplemental coverage.
