There is probably no topic less exciting or more annoying than health insurance. The entire experience is frustrating for most people: Navigation plans is confusing, everything seems very expensive, and when you make claims you often get empty denials that explain nothing and give you few options for appeal or further information. That being said, most people assume that once they choose a plan through their employer, they will be protected from a catastrophe, at least for the foreseeable future.
But that might not be the case. When we talk about supplemental insurance, we most often refer to Medicare because this coverage has known gaps. But even if you have really good insurance through an employer or organization, you may need to purchase additional insurance to ensure you are fully protected. The challenge? Find out if you actually need it.
What is additional insurance?
Additional insurance is something you take out in addition to your main insurance. It is intended to cover things that are not included in your overall insurance policy. It is not intended as primary reporting. There are numerous types of additional insurance. For example, if you traveled to a foreign country and purchased travel health insurance, this is a form of supplemental insurance. You can purchase special supplemental plans that protect you against accidents, critical illnesses (including specific policies for a cancer diagnosis), hospital expenses, vision and dental care, and disability.
You pay a premium For your supplemental insurance, you have a fixed benefit plan, just like your other insurance, but supplemental insurance typically pays either a flat amount or a percentage of your costs directly to you. So, for example, if you have hospital compensation and are faced with health insurance Huge bill after a week in the hospital If your primary insurance only covers a portion of the cost, supplemental insurance will step in and send you a lump sum check to cover those costs.
Of course, additional health insurance comes with additional costs, so the most important question you need to answer is whether you actually need it. There is no point in paying for the same coverage twice, nor does it make sense in paying for coverage that you will never use. However, there are four scenarios in which it’s pretty clear that you need additional insurance.
If you have a high deductible
The average deductible for employer health insurance continues to rise towards $2,000and the out of your own pocket maximum (The maximum amount you will pay in addition to your premium over the life of your policy, including deductibles and co-payments) is limited by law to $9,450 for individuals and $18,900 for families – although the Average In 2023, the personal contribution was $4,346. So, as a fun experiment, compare these numbers to your savings account. If there is a significant gap, it means you would not be able to pay large medical costs without resorting to loans, home equity or credit cards.
If this applies to your situation, additional health insurance might be a good idea as it can cover at least some of these costs and reduce your burden. Last but not least, it can give you more breathing room if you end up having to pay for an expensive surgery or hospital stay.
If you are at high risk of health problems or injuries
Another reason you may want to purchase supplemental insurance is that you are at higher risk than most people of incurring high healthcare costs:
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Family history. If you have a frequent history of serious illnesses such as cancer or have had a genetic test and are at high risk of developing some form of cancer, it may make sense to take out additional insurance as there is a high chance that you will need additional insurance eventually pay for expensive treatments.
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Dangerous job. If you work in an industry where the rate of serious injuries is very high, e.g construction or logging, you may need more insurance coverage to protect yourself from frequent medical bills.
If you use a lot of healthcare
If you typically use a lot of healthcare resources for health or family reasons and do not expect this to change in the foreseeable future, additional insurance may make sense. Although you may reach your deductibles and deductible maximums relatively quickly, your policy may not provide enough coverage for your needs.
This is particularly true if there is a risk of incapacity to work. Your primary insurance policy may cover most or even all of your expenses, but could you handle losing your income for a period of time? If you are unable to work, you may also have to pay additional costs, such as: Child careHelp around the house or home care and additional insurance can mean the difference between financial survival and ruin.
If there are gaps in your insurance coverage
Finally, additional insurance could close the gaps in traditional insurance coverage – such as: B. Dental and vision insurance, which are (oddly) treated as such separate from health insuranceand are often frustratingly sparse in terms of what they cover. Who hasn’t gone to the ophthalmologist and discovered that basic vision insurance barely covers the examination and offers nothing at all for expensive glasses and contact lenses? Or discovered that their dental insurance has such a high deductible that it never actually exists pays for everything apart from semi-annual cleanings?
If your vision and dental insurance aren’t helping much, a supplemental plan may be beneficial, especially if you anticipate heavy use in the coming year (e.g., you’ve been putting off dental care because your insurance is bad and won) . doesn’t cover anything).
Additional health insurance isn’t always necessary, but it’s worth running the numbers to see if it could benefit you – especially if you fall into one of these four categories.
