Supplemental Medical Insurance – Do You Really Need It?

No one can see the future. You never know when you are someone in your family will have an emergency and have to got to the hospital. And unless you have billions of dollars in the bank, you should probably buy some supplementary medical insurance. I say billions because some medical bills cost millions of dollars, so even if you are a millionaire, you will need some type of help. Some people have lots of money saved up for rainy days such as medical disasters, but there’s only a couple of hundred people in the world who have enough in savings to cover any type of medical expenses.

Growing up we were taught to have medical insurance just in case. But with the rising costs in hospital bills, just having medical insurance is not enough. Now it is becoming common for people to have insurance policies that back up their original policies. Most people think that they are OK with their assets and capital in the bank, but a medical bill can ruin you! You can lose your house, your savings, and even your car because of medical bills.

This is a situation that no one in their right mind would want to be in. If you are able, it would be wise to begin shopping, and comparing different supplemental insurance plans so that you can protect yourself.

Every one needs it of course, but some will need it more than others. Does your family have a history of medical conditions? If so, you may be one of those people who will quickly exhaust all of your original insurance plan money

Typically, people who have their own business or are self employed will, more than likely, suffer the most if some thing drastic happens. People who work for good companies will be at some what of an advantage, because in many cases, their employer will have an option to have a supplementary insurance policy as a part of their regular insurance plan.

People who are employed by a major corp do not have to got through the trouble of shopping around for a good provider because the company will do it for them. It’s definitely safe to say that people who are self employed are pretty much on their own. And this should give them all the more reason to think about purchasing supplemental insurance. Another thing to think about is the fact that most self employed don’t have workers comp like all big businesses.

Supplemental Medical Insurance – Get the Best Rate

Do you need Supplemental Medical Insurance? And if you do, how can you find the best rate?

What Is It?

Generally, supplemental insurance is thought of as only for senior citizens on Medicare. However, anyone can buy a supplemental policy.

These policies work with the insurance coverage you already have, acting as an “add-on” to give you extra coverage. With this type of insurance, you typically receive direct cash benefits regardless of what your other insurance pays.

There are three main types of supplemental policies:

* Disease Specific Insurance. This policy pays you cash benefits if you require treatment for a specific disease, such as cancer.

* Accident Health Insurance. This policy reimburses you for medical costs resulting from accidents. It can also pay cash benefits if the accident disables you or if you lose your vision or a limb, finger, or toe. If you die because of an accident, your beneficiaries receive the payments.

* Hospital Indemnity Insurance. This policy provides a daily, weekly, or monthly cash benefit if you’re in the hospital for over a specific number of days.

Should You Get a Supplemental Policy?

Before you consider buying supplemental medical insurance, you must have a good basic insurance policy. Then, you might consider a supplemental policy if you can afford it and you’re at high risk for serious illness, accidents, or hospitalization – for example, if your family has a history of cancer or another serious health problem.

Finding a Cheap Rate

Supplemental health insurance policies cost less than regular health insurance because they offer less coverage and have lower maximum caps.

To find the best rate, do some comparison shopping on an insurance comparison website so you can compare quotes from several companies (see link below).

You can also save money on your policy by choosing one with higher co-payments and higher deductibles.

Catastrophic Health Insurance Plus Supplemental Medical Equals Great, Affordable Health Coverage

If you are self employed or do not get health insurance through your job, then it is something you are probably concerned about. Many people have been financially ruined because they got sick or had an accident when they did not have coverage, and many studies show that people with health insurance get better care! Even if you decided to budget for a health plan, you may have been declined for coverage because of a pre existing health condition. It can be very tough to find an adequate medical plan these days for lots of reasons!

However, maybe you haven’t considered the combination of a high deductible, or catastrophic, health insurance plan with a supplement. The medical plan may have a deductible of $5,000, $10,000, or even $20,000! That sounds like a lot, but it will pale in comparison with the medical costs a person can incur because of a major accident or injury. Because the deductible is high, the premiums will be much lower. These types of plans also do not suffer as many rate increases, and insurance companies usually relax their underwriting standards too!

Of course, $5,000 to $20,000 is still a lot of money to have to pay, but it is also amount you could probably borrow or pay off. Think of this size of a deductible as a car payment. However, if you ran up a $100,000 or $1,000,000 bill because of a terrible accident or illness, it would be almost impossible for most you to find that much money from a lender. That would be like paying off a home mortgage, or maybe even the mortgage on a mansion! It would be much easier to handle the car payment, now wouldn’t it?

But we are not done yet. Remember I mentioned supplemental plans. You can find cash supplements to cover unexpected accidents or sickness in the amount of $5,000, $10,000 or $20,000. Because these policies only cover this low amount, they are affordable and easy to qualify for! Now you have taken care of that unexpected bill.

You can also find a high deductible medical plan that qualifies as an HSA (Health Savings Account) plan. You can set up a savings account that actually pays interest. Contributions are tax deductible, within specified limits. And you can use the money in this account for many medical costs that health insurance plans do not usually cover.

So consider what you have now. You are paying $300 to $500 less for your catastrophic health plan every month if you are like many families Take some of that money and contribute to your tax deductible savings account, and then take a little more and pay for a supplement. You have a way to pay for doctor’s visits and prescriptions, and you have coverage in case of a major illness! You will probably even have a little money left over to spend on other items in your family’s budget. Also consider that, no only is the HSA account deductible, the premiums may also be deductible. I cannot help you find really cheap health insurance, but I can help you save some money!