As you begin to understand the wide world of insurance, you start to see the world as one big test in risk management. Deciding what insurance policies to take out becomes an exercise in deciding the amount of risk you’re comfortable taking. While health insurance used to be optional, in today’s modern medical climate a medical plan is required. Yet, for individuals who don’t fully understand how health insurance works, you often see a jaw drop as they realize the major medical insurance they pay an arm and a leg for each month isn’t enough. While frustration often follows, individuals begin to relax once they understand the benefits many supplemental health insurance policies can provide.

What Is Supplemental Health Insurance

Basically, supplemental health insurance provides financial security for the many health problems life may throw your way. The coverage is designed to cover any and all gaps your major medical health insurance does not cover. Costs like deductibles and co-payments may be covered by differing supplemental plans in certain situations. In addition, expenses like lost income and living expense may be covered by supplemental plans when your primary insurance does not cover things. Often, individuals who consider these types of insurance policies are individuals who are self-employed, families with children, seniors, families unprepared to handle large medical bills and individuals who don’t handle risk well.

It’s Not A Replacement

One important note to remember is that supplemental plans should not replace a major medical policy. No supplement policy is a replacement for full coverage health insurance. If you choose to use a supplemental plan in that manner, you’re putting yourself in grave danger, especially from a financial perspective.

Types Of Supplemental Health Insurance

Supplemental health insurance spans a plethora of different types of policies. Here are some of the most common forms of supplemental policies and a brief overview of the product:


With cancer rates continually increasing throughout our society, it’s difficult to avoid the disease these days. It’s also important to properly protect your income and savings if this critical illness may arise. Cancer coverage is a form of supplemental insurance designed to do just that – cover costs associated with the disease.


Most companies are required to have some level of disability insurance. However, you may want to look into personal coverage if you’ve found your employer’s coverage to be lacking. Disability plans cover costs related to an individual’s inability to work.


While self-explanatory, dental insurance can provide preventive care along with basic procedures for a fraction of the cost one would pay solely out-of-pocket. Check your employee benefits plan to see if adding on a dental policy is available, as it’s often fairly a cheap add on.


just like dental insurance, is the same in that it’s usually cheap to add onto your employee benefits package (if available during open enrollment). Vision insurance covers eyes exams and a certain percentage of costs related to glasses and contacts. Certain eye disorders (as long as they are not pre-existing) are cover by many vision plans.


In your greatest time of need, critical illness insurance can take the financial burden off you and your family – allowing you time to focus on your health and recovery. Often paid in a lump sum pay out, these policies can cover: cancer, heart attacks, strokes and more.


There is no denying it, accidents happen, and when they do, you can rest assured your financial future is protected if you have accident insurance. These policies are created to cover medical costs associated with an accident that your major medical plan didn’t cover.

Benefits Of Supplemental Health Insurance

Each and every supplemental health insurance policy will be different, and there are numerous plans and types of coverage to choose from. Each different policy offers different benefits. Some policies offer add-ons to your normal health insurance plans – think dental or vision policies. Some plans offer to help pay for out-of-pocket medical expenses like co-pays and deductibles. Other supplemental policies offer lump sum payouts to cover other expenses due to injury or illness.

Why Supplemental Health Insurance

Statistics have shown that an unexpected critical illness, severe accident or disability can be financially devastating for families of any means. Supplemental health insurance policies have been created to give individuals and families a safety net when disaster strikes. By taking out a supplemental policy, you can protect you and your family from a number of ailments with regards to finances. You will be able to focus on health because the finances will be handled. You can also hedge your bets with supplemental coverage. If a history of breast cancer runs in your family, you may want to strongly consider taking out a critical illness policy. By purchasing a plan now, you could avoid sky-high medical bills in the future – if you do get the disease.

It’s Just That – A Supplement

While supplemental health insurance can provide relief in times of need, it’s important to remember that supplemental coverage is just that – a supplement to you major medical plan. Make sure to avoid foolishly skimping on your major medical because you think your supplemental coverage is enough.

Supplemental Health Insurance & You

When you begin looking into supplemental health insurance, you’ll want to do your research. Figure out which type(s) of supplemental plans may offer you and your family a benefit. Check with your employer to see if any of these types of plans are covered through an employer-sponsored group program, as group plans are almost always cheaper. If not, you can look around on the open market for an individual policy.

When you are shopping around, you will want to be sure and get multiple cost estimates from various companies for any type of policy you are interested in. Put together a list of coverage questions, ask each insurer and compare each plan on the basis of your need.

Just be careful! Comparing supplemental health insurance policies is a lot like comparing apples to oranges. While similar, not everything is the same, or as it seems. You must read all the fine print before choosing an insurer. By making an educated decision with regards to your policy, you can protect yourself from financial heartbreak down the road.