Supplemental Insurance – Is it for You?

April 20, 2010

By Joseph Stutzman

You have no doubt received all kinds of offers in the mail for supplemental insurance. Most people associate supplemental insurance with Medicare and the need to cover what Medicare won’t but there are all forms of supplemental insurance:

  • Medicare supplements pick up the tab, or a portion of it, on those things that Medicare doesn’t, such as long term care, nursing home care, at home care and prescription drugs. Some seniors even carry a Medicare supplement in addition to long-term care insurance in order to guarantee their financial security. What many people don’t realize is the cost associated with these policies. Both of these policies can run up a bill of $4,000 annually. Many seniors on fixed incomes either forgo these supplements, trying to cover the additional costs themselves, or will do without necessities in order to cover the cost of the multiple insurance policies.
  • Hospital Indemnity supplements provide cash benefits for specific covered services, including emergency hospital stays and outpatient services. These are usually outlined clearly in the policy with the benefits coming directly to the patient who in turn can pay the hospital.
  • Basic Medical supplements provide fixed benefits for specified preventative care that may not be covered under your current policy and may pay in addition to your current policy, covering your co-pays and deductibles.
  • Supplemental Cancer benefits are just what they say. For those worried about cancer, they will provide cash benefits directly to the beneficiary for cancer related expenses.
  • Lump Sum supplements most often involve critical conditions or illnesses, such as heart attacks, cancer, heart surgery, stroke and other catastrophic illnesses. The conditions and illnesses are usually outlined very clearly and you will not be able to collect on this policy for other than the specified conditions.
  • Disability supplements provide for cash payments to those becoming either temporarily or permanently disabled and provide a monthly cash benefit directly to the victim in order to help pay the bills when you are not able to work. Certain career fields may not be covered, such as a lineman for the electric company or a fireman and some will not even cover in the event of an automobile accident or an accident on public transportation. Read your policy from front to back before agreeing to the terms.
  • Long Term Care supplements provide help to the policy holder with the costs associated with long term care, such as adult day care, medical care at home and assisted living facilities and nursing homes.

A health care crisis can threaten the stable financial foundation that you have built. The premiums are often low, though the benefit payout can also be low, so shop, shop, shop. Ask friends and relatives. Research all of your options. Compare coverages between policies and make an informed decision. Once you are sick or disabled it is too late. And always be aware that if it sounds too good to be true-it probably is. Shop reputable insurance agencies, you know, the ones that you see advertised on television. Check the Better Business Bureau (BBB), which is easy to do online, to find out if any complaints have been filed against the company you are considering or if law suits are pending. That is always a red flag. Oftentimes, just searching the company name will bring up any substantial news about unsatisfied customers.

You also need to thoroughly consider the cost of peace of mind against your current situation. Many people are over-insured, carrying every possible insurance plan, while others are not insured at all. In short, insurance is a means of guaranteeing protection or safety. Only you can decide if you want or need this type of protection.

Along with writing articles, Joseph enjoys gardening. Garden Harvest Supply is one of his favorite websites which offers vegetable plants for sale.

Article Source: http://EzineArticles.com/?expert=Joseph_Stutzman

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