Ancillary Plans

BEYOND MEDICARE INSURANCE

Accidental Insurance

Accident Insurance has become increasingly popular in the insurance marketplace today. This low-cost product can prove to be financially beneficial in the event of an injury. Accident insurance helps fill the gap created by deductibles and co-insurance in the traditional health insurance policy available today.

One benefit of this policy that makes it unique is that the cash benefit is paid directly to the insured rather than the healthcare provider. This empowers the insured to use the benefits as they see fit to offset the cost for treatment of the injury. The benefits afforded by Accident Insurance are paid regardless if a major medical plan is in place.

Critical Illness Insurance

The typical critical illness policy pays a lump-sum benefit to the insured upon diagnosis of a covered critical illness. The benefit amount is selected at the time of application and the premium charged is based on the amount of the benefits payable. Critical Illness insurance helps fill the gaps in a major medical policy caused by deductibles and coinsurance, out-of-network costs, travel expenses or other treatments that your major medical will not cover. The list of critical illnesses covered is typically a lengthy list and can be found in the policy documents. Some companies will also offer a secondary list that pays a reduced benefit to the insured as well.It’s important to note that since these policies contain limited benefits, they do not qualify as “minimum essential coverage” under the Affordable Care Act.

Cancer Insurance

Probably one of the most popular types of supplemental insurance in the marketplace, Cancer Insurance has also been around the longest. Simply put, if a named insured on the policy is diagnosed with a covered type of cancer, the insured will receive a lump-sum payment from the insurance company to be used in whatever way they wish. The diagnosis does not have to be terminal in order to receive the benefit, and the types of cancer covered will be listed in the policy documents. Several benefits of the typical cancer policy will include:

It’s important to note that since these policies contain limited benefits, they do not qualify as “minimum essential coverage” under the Affordable Care Act.

Supplemental Insurance

The term Supplemental Insurance has become a “catch-all” phrase that includes direct benefit plans such as Accident Plans, Critical Illness Plans, Cancer Plans and Dental and Vision Plans. Supplemental Insurance is marketed to individuals and to the workplace. These plans offer cash benefits payable directly to the policyholder and are typically specific to a certain segment of the healthcare market.

Supplemental Insurance Plan sales have grown in popularity since they are marketed to fill gaps in coverage that result from deductibles and co-insurance in major medical plans. Although the bulk of sales results from employers offering the plans as part of a “voluntary” package to employees, advertising has lead to many more sales directly to individuals and families.

Why Accident Insurance?

Expenses such as travel costs, over the counter health products, out of pocket deductibles and co-insurance can be offset using the immediate benefits from an Accident Insurance policy.

Are There Deductibles or Copays?

Yes. A typical accident plan has a deductible of between $100 and $250 while most insurance policies have a deductible of between $1,000 and $2,500. The Accident Plan effectively lowers the health insurance policy deductible down to the $100 or $250 level.

Are Benefits Stackable?

Absolutely, in fact, this is an outstanding benefit provided by the typical accident policy. Let’s use an automobile accident for an example. John Smith is driving to the office and is struck by another vehicle at an intersection and suffers several injuries as a result. John’s auto insurance will pay for injuries as well as the at-fault driver’s insurance policy. However, John’s accident plan will also respond by paying several benefit amounts directly to John:

Although these benefits will differ depending on the plan purchased, it illustrates that John may recover an additional $2500 from his accident insurance claim to be used in any manner he sees fit.

Are Benefits Affordable?

Not only are Accident Plans affordable, they are “guaranteed issue”. This means that there are very limited or no questions on the application for coverage. Most of them will pay on and off the job, and the list of excluded occupations is minimal depending on the company offering coverage.

Accident Insurance Plans provide a great way for supplementing the family’s major medical insurance and for individuals who are self-employed and may not carry workers’ compensation insurance. Knowing that every penny spent as a result of an accident is going to be reimbursed through one policy or the other offers peace of mind for any family or individual.

You can also learn more about your Medicare options.