Supplemental Insurance? What is it?

Supplemental Insurance - You’ve heard the term, but if you are like 93% of the population, you don’t know WHAT it is. The best way to understand Supplemental Insurance is to understand what it is not. Supplemental Insurance is NOT major medical insurance.

Major medical insurance is designed to take care of a majority of the medical bills which one can expect in the event of a serious and unfortunate medical condition such as cancer, a heart attack or serious accident. It is designed to pay the doctor, hospital or facility where treatment has taken place AFTER the insured individual has met their deductible. Even then, the individual will still likely have co-insurance payments (typically 20% of the total bill).

Unfortunately the financial bleeding doesn’t stop there. Let me illustrate.

A typical dual income family is blindsided when the wife and mother, whose financial contribution is significant to the household budget, is diagnosed with breast cancer. The family has a major medical plan with a $2500 deductible, which is quickly satisfied after just a few treatments. Their co-insurance requires them to cover 20% of the remaining bills. She is too sick to work. Also, to get the best possible care, she will need to travel to a specialized facility in another state. She doesn’t want to travel alone, so her husband uses up his vacation time to go with her. Meanwhile, they must hire a sitter to watch their children while they are away.

All the while, neither parent is working. They have been relying on their savings to get them by, but that is drying up. They turn to their credit cards, but there isn’t much room on them either. But they still need to keep the roof over their family, the lights on and the water flowing through the pipes. Unfortunately, the meter doesn’t stop running, even in a serious situation such as this.

What else can they do? Rely on family? Though family is great for emotional support, it is almost impossible for two families to survive on a one family income.

Get a loan? Not likely. Lending institutions want to know that they will get paid back and will want the borrower to have a steady income. If this family were successful at getting a loan that is just one more bill they will have to meet in the end.

THIS IS PRECISELY WHY PEOPLE NEED SUPPLEMENTAL INSURANCE!

Supplemental insurance gives people peace of mind by paying cash to the policyholder in the event of a serious medical event. They are free to spend the cash wherever they deem necessary. If they need it to keep the lights on or put food on the table, they can use it there. If they want to use it for the gas used to travel to and from treatments, they can. This money allows you to continue to live your life while going through a medically difficult time.

It is insurance for daily living; peace of mind in a medically uncertain world.