Supplemental Insurance Information
What is supplemental health insurance?
Health insurance goes a long way toward paying your medical expenses. Plus, it’s now required by law. However, even if you have a health insurance policy, you can still face out-of-pocket expenses like deductibles, co-pays and treatment. Supplemental health insurance can reduce that burden.
What are the benefits of supplemental health insurance?
Supplemental health insurance is not meant to replace primary health insurance. But, it can help pay some medical expenses once your primary policy has paid. These policies help cover expenses like the following:
- Outpatient services and hospital stays
- Critical illnesses and emergencies
- Private rooms and private duty nurses
- Deductibles and co-pays
- Unexpected childcare
What are the types of disability insurance?
There are two types of disability policies: Short-Term Disability (STD) and Long-Term Disability (LTD):
- Short-Term Disability policies (STD) have a waiting period of 0 to 14 days with a maximum benefit period of no longer than two years.
- Long-Term Disability policies (LTD) have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life.
Disability policies have two different protection features that are important to understand.
- Non-cancelable means the policy cannot be canceled by the insurance company, except for nonpayment of premiums. This gives you the right to renew the policy every year without an increase in the premium or a reduction in benefits.
- Guaranteed renewable gives you the right to renew the policy with the same benefits and not have the policy canceled by the company. However, your insurer has the right to increase your premiums as long as it does so for all other policyholders in the same rating class as you.
In addition to the traditional disability policies, there are several options you should consider when purchasing a policy: