Do You Need Supplemental Health Insurance?

What it is meant to do

Supplemental plans (accident, critical illness, hospital indemnity, fixed indemnity) pay cash benefits that help with the deductibles and copays a major medical plan leaves you to pay. They are add-ons, not a substitute for primary coverage.

When it is worth it

Supplemental coverage tends to make sense if your main plan has a high deductible, if a large surprise bill would strain your finances, or if you want extra protection for a specific risk. It makes less sense if your main plan already has low out-of-pocket costs.

• You have a high-deductible major medical plan
• A big bill would be hard to absorb
• You want targeted protection (accident, critical illness)

How to decide

Weigh the extra premium against the protection it buys. A licensed agent helps you see whether a supplemental plan fills a real gap for your situation, or whether the money is better spent elsewhere, at no cost.