Do I Need Supplemental Insurance If I Already Have Health Insurance?
Updated: Oct 14
Do I Need Supplemental Insurance If I Have Health Insurance?
Already have health insurance? Learn why some people consider supplemental insurance and how to identify potential financial gaps before buying additional coverage.
Having Health Insurance Doesn't Always Mean Having Every Type of Financial Protection
A person can have good health insurance and still have financial concerns related to an accident, hospitalization, or serious illness. That does not automatically mean supplemental insurance is necessary. The better question is:
"What financial risks remain after I consider the coverage I already have?"
Isn't health insurance enough?
Health insurance is designed to provide comprehensive medical coverage under the terms of the plan. However, cost-sharing can still exist. Depending on the plan, consumers may have deductibles, copayments, coinsurance, and other expenses.
What is a financial gap?
A financial gap is the difference between the financial resources available to you and the expenses you could face after a covered medical event. The gap could include medical cost-sharing or nonmedical household expenses.
What if I have a high-deductible health plan?
A person with a higher deductible may be particularly interested in understanding how much money they would need to pay before their health plan begins paying according to its deductible structure. Supplemental coverage may be considered as one potential way to address certain financial risks.
What if I have an emergency fund?
An emergency fund is another important part of financial planning. Someone with substantial savings may have less need for certain supplemental benefits than someone with limited savings. That is an individual financial decision.
Can supplemental insurance cover my deductible?
A supplemental policy does not necessarily pay a person's entire deductible. It may provide a specified benefit following a qualifying event. Whether that benefit helps with a deductible depends on the amount and circumstances.
What if I have Medicare?
Medicare beneficiaries should first understand their current Medicare arrangement and existing supplemental coverage. Different types of supplemental products serve different purposes.
What if my employer already offers supplemental benefits?
Review the employer-provided coverage before purchasing additional policies.
You may already have accident, critical illness, hospital, dental, vision, or other supplemental benefits.
How do I decide whether I need Supplemental Insurance?
Consider:
How much money do I have in emergency savings?
What is my health insurance deductible?
What are my copayments and coinsurance?
How much could a hospital stay affect my finances?
What would happen if I missed work?
Do I have dependents?
Do I have existing supplemental coverage?
What does the new policy actually cover?
What would the premium cost?
Are the benefits worth the financial protection to me?
Is supplemental insurance a requirement?
Generally, supplemental insurance is optional. The important issue is whether a particular policy fits your individual needs.
Where should I start?
Start with your existing insurance. Then identify the financial risks you are most concerned about. JRF Services provides supplemental insurance resources and online quote options to help consumers explore available coverage.
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